Question: I need all answer with formula and not with excel please :) Question 3: Solve the question (71 points) Suppose we have the following projects
Question 3: Solve the question (71 points) Suppose we have the following projects on two stocks. Assume the correlation among the two assets returns is 0.7 Probability Stock A Stock B State of Economy Recession 0.3 -2% -8% 0.1 5% 6% Slow Good 0.6 12% 14% a. Find the expected return of shares A and B (16 points) b. Find the standard deviation of shares A and B (30 points) c. Find the investment percentage needed in A and B shares to create the minimum variance portfolio. (25 points)
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