Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:

Year RA RB

2009 20% 5%

2010 42% 15%

2011 20% 13%

2012 8% 50%

2013 25% 12%

Calculate the standard deviation of returns for each stock and for the portfolio.

I know the answersto be

A-25.3

B 24.3

portfilio 16.3

However, I am not able to figure out how to get ther.

I need step by step please.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions