Question: Please show steps and answer the question fully The expected returns and standard deviations of stocks A and B are listed below, along with the
Please show steps and answer the question fully
| The expected returns and standard deviations of stocks A and B are listed below, along with the correlation the returns of Stock A and Stock B. Calculate the expected return and standard deviation of a portfolio with the relative weights in the table below. | |||||||
| Stock A E(R) | 12.00% | ||||||
| Stock B E(R) | 18.00% | ||||||
| Stock A | 36.00% | ||||||
| Stock B | 60.00% | ||||||
| Weight Stock A | 45.00% | ||||||
| Weight Stock B | 55.00% | ||||||
| A,B | 0.65 | ||||||
| Use the scratchpad to show your work in Excel. | |||||||
| Type your numercial answer into the yellow cells below. | |||||||
| Answers should be to two decimal places, e.g. 1.23% or $123.45. | |||||||
| Portfolio Expected Return | |||||||
| Portfolio Expected Standard Deviation | |||||||
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