Question: Please answer A - C , thank you. Consider the following six months of returns for two stocks and a portfolio of those two stocks:
Please answer AC thank you. Consider the following six months of returns for two stocks and a portfolio of those two stocks:
Click the icon to view the monthly returns.
Note: The portfolio is composed of of Stock A and of Stock B
a What is the expected return and standard deviation of returns for each of the two stocks?
b What is the expected return and standard deviation of returns for the portfolio?
c Is the portfolio more or less risky than the two stocks? Why?
a What is the expected return and standard deviation of returns for each of the two stocks?
The expected return of Stock is
Round to one decimal place.
Monthly Returns
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