Question
You have $70,000 to invest. You've done some security analysis and generated the following data for two stocks and Treasury bills: Security Stock A Stock
You have $70,000 to invest. You've done some security analysis and generated the following data for two stocks and Treasury bills:
| Security | Stock A | Stock B | T-bills |
| Expected return (%) | 12 | 7 | 2 |
| Variance | 0.04 | 0.0225 | 0 |
| Correlation with stock A | 1 | 0.4 | 0 |
What is the weight of stock A in the optimal risky portfolio?
If you invest 40% of your funds in T-Bills, what is the expected return of this complete portfolio?
What is the standard deviation of the optimal risky portfolio?
What is the Sharpe ratio of your complete portfolio?
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Introduction To Cryptocurrency The Basics Of Cryptocurrencies And The Whole Story
Authors: Retta Fitch
1st Edition
979-8353769804
