The following are estimates for two stocks. The market index has a standard deviations of 22% and

Question:

The following are estimates for two stocks.

The market index has a standard deviations of 22% and the risk-free rate is 8%.
a. What are the standard deviations of stocks A and B?
b. Suppose that we were to construct a portfolio with proportions:
Stock A: ......30
Stock B: ......45
T-bills: ........25
Compute the expected return, standard deviation, beta, and nonsystematic standard deviation of theportfolio.

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...