Exercise 1 You hold a stock A that provides you with the following returns: Probability 10%...
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Exercise 1 You hold a stock A that provides you with the following returns: Probability 10% 20% 50% 20% Return 12 13 15 20 1/ What is the expected return and the risk of this stock (variance and standard variation)? Suppose you hold a portfolio composed by: 70% of stock A 30% of stock B knowing that the variance of stock B is 10 and the expected return is 20. The correlation between A and B is 0.4 2/ Calculate the risk and return of this portfolio. Suppose you hold a portfolio composed by: 50% of stock A 50% of stock C knowing that the variance of stock C is 12 The variance of the portfolio is 20. What's the correlation between A and C? Exercise 1 You hold a stock A that provides you with the following returns: Probability 10% 20% 50% 20% Return 12 13 15 20 1/ What is the expected return and the risk of this stock (variance and standard variation)? Suppose you hold a portfolio composed by: 70% of stock A 30% of stock B knowing that the variance of stock B is 10 and the expected return is 20. The correlation between A and B is 0.4 2/ Calculate the risk and return of this portfolio. Suppose you hold a portfolio composed by: 50% of stock A 50% of stock C knowing that the variance of stock C is 12 The variance of the portfolio is 20. What's the correlation between A and C?
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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
Posted Date:
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