The Actual Returns of Company A for the Past 3 months were 15%, 25% and -5%...

 

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The Actual Returns of Company A for the Past 3 months were 15%, 25% and -5% Company B were 18 %, 24% and 1%- In case of Portfolio, there will be estual investraent a) calculate the expected return of company A using arithmetic average. Calculate the expected Standard deviation of c) which of the 2 companies will invest in? you. d) Find the covariance between the rates of return. e) Find the correlation Coefficient between the rates of return. f) Find the expected portfolio return if you invest equally in the 2 companies. 9) Find the weighted Standard deviation of the portfolio. Find the standard deviation of the portfolio using the Correlation coefficient found in (Ques. e). i) At what correlation coefficient is the maximum risk: reduction obtained from diversification? 1) calculate the expected return of Company B using. geometric average. The Actual Returns of Company A for the Past 3 months were 15%, 25% and -5% Company B were 18 %, 24% and 1%- In case of Portfolio, there will be estual investraent a) calculate the expected return of company A using arithmetic average. Calculate the expected Standard deviation of c) which of the 2 companies will invest in? you. d) Find the covariance between the rates of return. e) Find the correlation Coefficient between the rates of return. f) Find the expected portfolio return if you invest equally in the 2 companies. 9) Find the weighted Standard deviation of the portfolio. Find the standard deviation of the portfolio using the Correlation coefficient found in (Ques. e). i) At what correlation coefficient is the maximum risk: reduction obtained from diversification? 1) calculate the expected return of Company B using. geometric average.

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