Question: Question 2 : (8 marks) CRM inc is exploring the risk of different portfolio allocation between two stocks. Complete the following table.Show your work. Case

Question 2: (8 marks) CRM inc is exploring the risk of

Question 2: (8 marks)

CRM inc is exploring the risk of different portfolio allocation between two stocks. Complete the following table.Show your work.

Case ] Case ? Weight in stock ! Weight in stock ? 25%/} Standard deviation of stock !' 15%/0 24/0 Standard deviation of stock ? Covariance between stocks 1 and 2 Correlation between - . 20 40 stocks 1 and 2 Portfolio variance* Portfolio standard ` E deviation

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