2. Consider the following data relating to three stocks. (a) Find out the expected risk and...
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2. Consider the following data relating to three stocks. (a) Find out the expected risk and return of each stock - A, B and C. [4.5 MARKS] (b) Find the expected risk and return of a Stock Portfolio of all the three stocks in equal proportion. [3 MARKS] (c) Using a suitable measure, indicate which amongst the portfolio or each of the three stocks gives better performance. [2.5 MARKS] Economic Probability Returns from Stocks Scenario A B C Boom 40% 25% 40% 30% Normal 40% 10% 20% 10% Recession 20% -10% -15% -5% 2. Consider the following data relating to three stocks. (a) Find out the expected risk and return of each stock - A, B and C. [4.5 MARKS] (b) Find the expected risk and return of a Stock Portfolio of all the three stocks in equal proportion. [3 MARKS] (c) Using a suitable measure, indicate which amongst the portfolio or each of the three stocks gives better performance. [2.5 MARKS] Economic Probability Returns from Stocks Scenario A B C Boom 40% 25% 40% 30% Normal 40% 10% 20% 10% Recession 20% -10% -15% -5%
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