Question
Using the following information find expected return, variance and standard deviation of Stock A and B. Also find the covariance and correlation between Stock A
Using the following information find expected return, variance and standard deviation of Stock A and B. Also find the covariance and correlation between Stock A and B.
| States | Probability | Return on Stock A | Return on Stock B |
| 1 | 20.00% | 26.00% | 9.00% |
| 2 | 30.00% | 18.00% | 15.00% |
| 3 | 50.00% | 10.00% | 30.00% |
If you invest 10,000 in stock A and 15,000 in stock B what would be your portfolio return and risk. Use information from question 2 if necessary. Please show work for all
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Extinction Governance Finance And Accounting
Authors: Jill Atkins, Martina Macpherson
1st Edition
0367492989, 978-0367492984
