Stocks X, Y, Z are currently traded at Px = $5, Py = $8, and Pz...
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Stocks X, Y, Z are currently traded at Px = $5, Py = $8, and Pz = $12. Their standard deviations of the returns are ox = 12%, dy = 20%, and oz = 15%. The return correlations between: [1] X and Y is 0.2, ([2] X and Z is 0.7, and [3] Y and Z is -0.3. a. [1pt] What is the standard deviation of the returns of the equal-weighted portfolio of Stock X and Y? 1 b. [1pt] What is the standard deviation of the returns of the price-weighted portfolio of Stock X and Z? Stocks X, Y, Z are currently traded at Px = $5, Py = $8, and Pz = $12. Their standard deviations of the returns are ox = 12%, dy = 20%, and oz = 15%. The return correlations between: [1] X and Y is 0.2, ([2] X and Z is 0.7, and [3] Y and Z is -0.3. a. [1pt] What is the standard deviation of the returns of the equal-weighted portfolio of Stock X and Y? 1 b. [1pt] What is the standard deviation of the returns of the price-weighted portfolio of Stock X and Z?
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Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
Posted Date:
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