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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 a) Calculate the ?covariance? and ?correlation?
You have two stocks A and B, and their returns along with S&P/TSX return for the last 3
years
a) Calculate the ?covariance? and ?correlation? between assets A and B. For this,
use average (mean) return for the stocks.
b) If you are willing to invest 60% of your money on A and rest on B, calculate your
?expected return? and ?risk? of the portfolio.
c) Calculate the ?betas? of stock A and B.
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