Question
Using the data in the following table, calculate: A. Average return and standard deviation for each stock B. Covariance between the stocks C. Correlation between
Using the data in the following table, calculate:
A. Average return and standard deviation for each stock
B. Covariance between the stocks
C. Correlation between the stocks
D. Compute average return and standard deviation of the portfolio that maintains a 50% weight in Stock A and 50% in stock B
| Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Stock A | -10.0% | 20.0% | 5.0% | -5.0% | 2.0% | 9.0% |
| Stock B | 21.0% | 7.0% | 30.0% | -3.0% | -8.0% | 25.0% |
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Executive Finance And Strategy
Authors: Ralph Tiffin
1st Edition
0749471506, 978-0749471507
