Question: please no excel, i dont know how to do C and D by hand State of Econom Bear Normal Bull Probability of States Occurrin Return
please no excel, i dont know how to do C and D by hand
State of Econom Bear Normal Bull Probability of States Occurrin Return on Stock S1 5% 8% 9% Return on Stock S2 4% 12% 30% Calculate the expected return, variance and standard deviation for each stock. Find the covariance and correlation between stocks S1 and S2. What is the minimum variance (for all possible returns) portfolio? a. b. c. d. Suppose you have $5000 to invest. If stock S1 costs S30/share and S2 costs $55/share, how would you distribute your investment to obtain the minimum variance portfolio from c? e. To achieve l 1% return, how should you form the portfolio? State of Econom Bear Normal Bull Probability of States Occurrin Return on Stock S1 5% 8% 9% Return on Stock S2 4% 12% 30% Calculate the expected return, variance and standard deviation for each stock. Find the covariance and correlation between stocks S1 and S2. What is the minimum variance (for all possible returns) portfolio? a. b. c. d. Suppose you have $5000 to invest. If stock S1 costs S30/share and S2 costs $55/share, how would you distribute your investment to obtain the minimum variance portfolio from c? e. To achieve l 1% return, how should you form the portfolio
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