Question: I NEED IT URGENT A person is interested in constructing a portfolio. Two stocks are being considered. Let x = percent return for an investment
I NEED IT URGENT
A person is interested in constructing a portfolio. Two stocks are being considered. Let x = percent return for an investment in stock 1, and y = percent return for an investment in stock 2.
The expected return and variance for stock 1 are E(x) = 8.25% and Var(x) = 25.
The expected return and variance for stock 2 are E(y) = 1.31% and Var(y) = 1.
The covariance between the stock returns is xy = 5.
What is the expected return in dollars, for a person who invests $500 in stock 1?
A person is interested in constructing a portfolio. Two stocks are being considered. Let x = percent return for an investment in stock 1, and y = percent return for an investment in stock 2.
The expected return and variance for stock 1 are E(x) = 8.45% and Var(x) = 20.
The expected return and variance for stock 2 are E(y) = 3.20% and Var(y) = 13.
The covariance between the stock returns is xy = 5.
Compute the correlation coefficient for x and y.
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