Question: Assuming you have 200,000 SAR , construct a complete portfolio assuming investment in a risk-free asset (with return of 4%) of your choice and the
Assuming you have 200,000 SAR , construct a complete portfolio assuming investment in a risk-free asset (with return of 4%) of your choice and the two companies stocks. What weights are you investing in each security?
from previous data i got for first compnay and secound one
| Closing Price | returns |
| 100.40 | |
| 99.4 | -1.0000% |
| 107.6 | 8.2495% |
| 114.6 | 6.5056% |
| 98.8 | -13.7871% |
| 103.8 | 5.0607% |
| 108 | 4.0462% |
| 99 | -8.3330% |
| 108.8 | 9.8990% |
| 97.5 | -10.3860% |
| 93.2 | -4.4103% |
| 101.8 | 9.2275% |
| average return | 0.4611% |
| variance | 0.6555% |
| standard deviation | 8.0960% |
secound one
| Closing Price | return |
| 9.36 | |
| 9.52 | 1.7094% |
| 11 | 15.5462% |
| 11.18 | 1.6364% |
| 10.72 | -4.1145% |
| 12.5 | 16.6045% |
| 14.14 | 13.1200% |
| 11.72 | -17.1146% |
| 11.98 | 2.2184% |
| 12.06 | 0.6678% |
| 10.98 | -8.9552% |
| 11.74 | 6.9217% |
| average return | 2.5673% |
| variance | 0.9690% |
| standard deviation | 9.8440% |
| Covariance | 0.52637% |
| correlation | 66.04714% |
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