Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock...
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Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock Y Mean 2.71% 3.16% Variance 0.003000 0.005000 The covariance of returns on stocks X and Y is 0.003900. Consider a portfolio of 70% stock X and 30% stock Y. What is the standard deviation of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123). Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel. Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock Y Mean 2.71% 3.16% Variance 0.003000 0.005000 The covariance of returns on stocks X and Y is 0.003900. Consider a portfolio of 70% stock X and 30% stock Y. What is the standard deviation of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123). Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.
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Related Book For
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson
Posted Date:
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