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You have two stocks A and B, and their returns along with S&P/TSX return for the last 3 years: Year Returns of A Returns of
You have two stocks A and B, and their returns along with S&P/TSX return for the last 3 years: Year Returns of A Returns of B Returns of S&P/TSX 1 9.12% -0.02% 10.11% 2 -1.65% 5.61% -2.00% 3 9.01% -8.00% 9.54% a) Calculate the covariance and correlation between assets A and B. For this, use average (mean) return for the stocks. (4 marks) b) If you are willing to invest 61% of your money on A and rest on B, calculate your "expected return and risk of the portfolio. (3 marks) c) Calculate the betas of stock A and B. (4 marks)
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