Question: help plz. i am lost. a) Find the expected return on each stock. Use at least six decimal places when computing (b) and (c) below
a) Find the expected return on each stock. Use at least six decimal places when computing (b) and (c) below to minimize rounding errors. b) i. Compute the variance and standard deviation of returns for each stock. ii. Find the covariance and correlation between the returns on Stock A and Stock B. c) Assume that you form a portfolip consisting of Stock A and Stock B. You invest $36,000 in Stock A and $84,000 in Stock B. i. Find the weight of each stock in the portfolio. ii. Find the expected return and standard deviation of returns on the portfolio consisting of Stock A and Stock B
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
