An investor is given the following information about two stocks returns. X Stock 1 Stock 2...

   

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An investor is given the following information about two stocks returns. X Stock 1 Stock 2 Mean 0.09 0.13 0.15 0.21 Standard deviation Note: Use numbers only in your answer without any comas, symbols, or letters. Report numbers significant to FOUR digits after the decimal point. For example, if the answer is 0.123456789 write 0.1235. If the answer is in percent write your answer as proportions. For example, if the answer is 12&, write it as 0.12 instead of 12. The investor in interested in investing 50% of his resources in stock 1 and 50% in stock 2. 1. What is expected return on the portfolio? 2. What is variance of the portfolio given that the coefficient of correlation between the two stocks is -0.2? 3. What is standard deviation of the portfolio given that the coefficient of correlation between the two stocks is -0.2? Suppose that a binomial random variable consists of 12 trials with a success probability of 0.30. Note: Use numbers only in your answer without any comas, symbols, or letters. Report numbers significant to three digits after the decimal point. For example, if the answer is &1,234.5678 write 1234.568. 1. What is the mean of this binomial random variable? 2. What is the standard deviation of this binomial random variable? An investor is given the following information about two stocks returns. X Stock 1 Stock 2 Mean 0.09 0.13 0.15 0.21 Standard deviation Note: Use numbers only in your answer without any comas, symbols, or letters. Report numbers significant to FOUR digits after the decimal point. For example, if the answer is 0.123456789 write 0.1235. If the answer is in percent write your answer as proportions. For example, if the answer is 12&, write it as 0.12 instead of 12. The investor in interested in investing 50% of his resources in stock 1 and 50% in stock 2. 1. What is expected return on the portfolio? 2. What is variance of the portfolio given that the coefficient of correlation between the two stocks is -0.2? 3. What is standard deviation of the portfolio given that the coefficient of correlation between the two stocks is -0.2? Suppose that a binomial random variable consists of 12 trials with a success probability of 0.30. Note: Use numbers only in your answer without any comas, symbols, or letters. Report numbers significant to three digits after the decimal point. For example, if the answer is &1,234.5678 write 1234.568. 1. What is the mean of this binomial random variable? 2. What is the standard deviation of this binomial random variable?