Stocks A and B have the following returns. a. What are the expected returns of the two
Question:
Stocks A and B have the following returns.
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two stocks?
c. If their correlation is 0.48 what is the expected return and standard deviation of a portfolio of 65% stock A and 35% stock B?
Transcribed Image Text:
12345 2 Stock A 0.08 0.04 0.14 -0.05 0.08 Stock B 0.05 0.04 0.05 0.01 -0.01
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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