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You purchase $9,000 of Finley Stock and $18,000 of Taylor Stock. Neither stock pays dividends. Finley has a return of 4% over the next year
You purchase $9,000 of Finley Stock and $18,000 of Taylor Stock. Neither stock pays dividends. Finley has a return of 4% over the next year and Taylor has a return of 4% over the next year. What is Finley's portfolio weight after the year has passed? Enter your answer as a decimal and show 4 decimal places. In other words, if the portfolio weight is 45%, enter .4500. Staley Stock's volatility is 0.3, and Blair Stock's volatility is 0.8. The correlation between the two stocks is 0.5. What is the volatility of a portfolio consisting of $2,000 in Staley Stock and $3,000 in Blair Stock.? Enter your answer as a decimal and show 4 decimal places
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