Consider the following table: Stock Fund Rate of Return -41% -11.0% 2018. 2019 2020 2021 8%...
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Consider the following table: Stock Fund Rate of Return -41% -11.0% 2018. 2019 2020 2021 8% 34% Bond Fund Rate of Return -18% 14% 5% 6% Required: a. Calculate the values of mean return and variance for the stock fund. -41% X -11% x8%x34 10 = 3.066 b. Calculate the value of the covariance between the stock and bond funds 5.63 c. Calculate expected return and standard deviation of portfolio where 30% is invested in stocks and the rest in bond. Consider the following table: Stock Fund Rate of Return -41% -11.0% 2018. 2019 2020 2021 8% 34% Bond Fund Rate of Return -18% 14% 5% 6% Required: a. Calculate the values of mean return and variance for the stock fund. -41% X -11% x8%x34 10 = 3.066 b. Calculate the value of the covariance between the stock and bond funds 5.63 c. Calculate expected return and standard deviation of portfolio where 30% is invested in stocks and the rest in bond.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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