Given the following two assets: Expected Return Standard Deviation 2.55% 3.95% Stock 1 9.2% 7.8% Stock...
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Given the following two assets: Expected Return Standard Deviation 2.55% 3.95% Stock 1 9.2% 7.8% Stock 2 Compute the expected return of an investment portfolio of stock 1 and 2? [equally weighted w1 = w2]. Assume the information provided below for the three stocks: Stock 1 2 3 E(R 10% 16% 24% o 5% 8% 11% 1 1.00 0.2 The correlation P 2 1.00 0.6 3 1.00 a. Assuming Portfolio (1) including 1, 2, 3 with the following respective weights 30%, 20%, and 50%, Calculate the expected return of the portfolio b. Calculate the standard deviation of portfolio (1) Given the following two assets: Expected Return Standard Deviation 2.55% 3.95% Stock 1 9.2% 7.8% Stock 2 Compute the expected return of an investment portfolio of stock 1 and 2? [equally weighted w1 = w2]. Assume the information provided below for the three stocks: Stock 1 2 3 E(R 10% 16% 24% o 5% 8% 11% 1 1.00 0.2 The correlation P 2 1.00 0.6 3 1.00 a. Assuming Portfolio (1) including 1, 2, 3 with the following respective weights 30%, 20%, and 50%, Calculate the expected return of the portfolio b. Calculate the standard deviation of portfolio (1)
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a To calculate the expected return of Portfolio 1 with weights of 30 for Stock 1 20 for Stock 2 a... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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