At the beginning of 2020 you invest $3,000 in Microsoft (MSFT) stock and $5,000 in Proctor and

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At the beginning of 2020 you invest $3,000 in Microsoft (MSFT) stock and $5,000 in Proctor and Gamble (PG) stock.
Suppose you expect the monthly return to be 1.2% for MSTF and 0.5% for PG and the standard deviation of monthly returns to be 11.6% for MSTF and 6.5% for PG, and that the correlation of the returns on the two stock is 0.18.

- What are the expected monthly return on your portfolio and its stand dard deviation?

- Compare and discuss the return and standard deviation of the portfolio to the return and standard deviation of the two individual stocks.

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At the beginning of 2020 you invest $3,000 in Microsoft (MSFT) stock and $5,000 in Proctor and

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Portfolio Return and Standard Deviation Analysis 1 Expected monthly return on the portfolio To calculate the expected return of the portfoliowe need t... View the full answer

Accounting Tools for business decision making

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