Question: Ch. 11&12 Practice Exercise 1. Consider a stock with the following return information for 2015-2020 Year Return 2015 259 2016 -15% 2017 3% 2018 41%
Ch. 11&12 Practice Exercise 1. Consider a stock with the following return information for 2015-2020 Year Return 2015 259 2016 -15% 2017 3% 2018 41% 2019 -6% 2020 12% Find the following for your sample of returns: Average Return, Variance, and Standard Deviation 2. Jamie's portfolio consists of $15,000 in Microsoft stock and $45,000 in Coca Cola. Microsoft has an expected return of 19% annually with a standard deviation of 42%. Coca Cola has an expected return of 10% annually with a standard deviation of 20%. The correlation between the 2 stocks has been 0.3. a) Calculate the expected return of Jamie's portfolio b) Calculate the standard deviation of Jamie's portfolio
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