Stocks A and B have the following returns: (Click on the following icon in order to...
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Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) Stock A Stock B 0.08 0.05 0.07 0.02 0.14 0.06 -0.04 0.02 0.08 -0.01 1 2 3 4 5 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.43, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B? Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) Stock A Stock B 0.08 0.05 0.07 0.02 0.14 0.06 -0.04 0.02 0.08 -0.01 1 2 3 4 5 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.43, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B?
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Related Book For
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
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