Consider a portfolio that contains stocks from the following firms: AB Volvo, Pentair, Inc., Reliant Energy, Inc.,

Question:

Consider a that contains from the following firms: AB Volvo, Pentair, Inc., Reliant Energy, Inc., TCF Financial, 3M Company, and Restoration Hardware. Data for these for a 60-month period (May 2003-April 2008) are contained in the data file Return on Stock Price 60 month. Compute the means, variances, and covariances for the monthly stock price growth rate. Determine the mean and variance for a that contains equal fractions of the six Construct a second by removing TCF Financial and Restoration Hardware. Determine the mean and variance of this second that includes 20% AB Volvo, 30% Pentair, 30% Reliant Energy, and 20% 3M Company. Compare this with the first and recommend a choice between them. Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...