Question: Beta Average Return Standard Deviation Correlation Stock 1 1.43 0.87% 0.10627614 0.78989803 Stock 2 1.66 0.56% 0.11315468 Using the info above answer the following questions.

	Beta	Average Return	Standard Deviation	Correlation
Stock 1	1.43	0.87%	0.10627614	0.78989803
Stock 2	1.66	0.56%	0.11315468	0.78989803

Using the info above answer the following questions.

1. You can split your $45,000 anyway you want into your two-stock portfolio. Investing $27,000 in Stock 1 and $18,000 in stock 2. Calculate the weights for each stock in your portfolio

2. What is the expected return of your portfolio?

3. What is the standard deviation of your portfolio?

4. What is the beta of your portfolio?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Choose three companies in three different industries, go to Yahoo Finance and download the monthly adjusted closing prices of the three companies in your portfolio and the S&P 500 index, for the...

Hi Vandana, this is a case study for my investment class. a little heavier than the last one I asked you about. Could you please help? details attached. Original Portfolio Mean Return Standard...

Finance &Investments Analysis Homework help Attached files are the questions and files needed ECO366 Investments Analysis Problem Set 3 This problem set will require you to calculate and plot...

This is spread sheet assignment. I will attached direction of assignment. Thanks Question #1 You have been given daily return data. In order to calculate average return, std deviation, Sharpe ratio,...

This is excel assignment again. Please see the attachment Thanks Question #1 You have been given daily return data. In order to calculate average return, std deviation, Sharpe ratio, semideviation,...

You have been assigned to construct a portfolio comprising two risky assets (Portfolios A & B) while considering your client's risk tolerance.The attached spread sheet shows historical monthly...

Durham Asset Management (please use GRG nonlinear or Evolutionary solver to solve his case) Durham Asset Management (DAM) is a small firm with 50 employees that manages the pension funds of small to...

please help me do the investment project. see questions and instructions in the word file. Part One: International Portfolio Management 1. Go to http://finance.yahoo.com, download monthly Adj. close...

You have been assigned to construct an optimal portfolio comprising two risky assets (Portfolios A & B) while considering your clients risk tolerance. The attached spread sheet shows historical...

Hello Tutors.I need help with 4 finance investment questions. Please be detailed as much as possible base on the steps taken. Besides your answer to the question, please attached the excel sheets...

TransTrust Corp. has changed how it accounts for inventory. Taxes are unaffected, although the resulting earnings report released this quarter is 20 percent higher than what it would have been under...

A and B established a company, if profit after first year was USD 900,000 find below: How much A and B will get if profit sharing ratio between them is 75:25?

A zero - coupon German bond promises to pay 7 , 9 1 3 , 0 0 0 in four years. The current exchange rate is $ 1 . 0 0 = . 8 6 7 5 and inflation is forecast at 4 . 2 5 percent in the U . S . and 3 . 1 3...

HOW WOULD I COMPLETE THIS ACTIVITY ON ECLIPSE WITHOUT SHOWING ERRORS!!!! PLEASE HELP!!!!! This activity will enable you to apply what you learn during this course. In this assignment, you will write,...