Question: urgently question Select TWO stocks that have negative correlation in their returns from any financial market(s), where data (up to 2021) are available for analysis.
urgently question Select TWO stocks that have negative correlation in their returns from any financial market(s),
where data (up to 2021) are available for analysis.
1.Show that they have negative correlation in stock returns. [4 marks]
2.Calculate the average annual return and risk for each stock. [10 marks]
3.What are the expected return of each stock for the year 2022? [4 marks]
4.Form a minimum risk portfolio from these two stocks with the right weightage of each
stock.
i. Display the investment opportunity set for this portfolio.
ii. What is the optimal weightage, minimum risk and expected return?
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