Question: USE THE RELEVANT INFORMATION IN THE TABLE BELOW ILL Use the relevant information in the table below to calculate the standard deviation ol & W
USE THE RELEVANT INFORMATION IN THE TABLE BELOW
ILL Use the relevant information in the table below to calculate the standard deviation ol & W portfolio that consists of stocks Y and Z. Stock Y Stock Z Portfolio Weighting 60% 40% 10% 15% Expected Return Standard Deviation 9% 6% Beta 1.80 0.25 Covariance Between Stocks Y and Z -0.003 2. The following table shows the annual returns over a six year sample period for the S&P 500 Market Index and MCH, Inc (an intellectual property rights firm). Assume that the historical information represents a sample, not a population. Use this data to calculate MCH's Beta and then estimate MCH's expected return assuming a risk-free rate of 3%. For the market return, use the sample average for the S&P 500. T Year 2013 2014 2015 2016 2017 2018 S&P 500 0.15 0.13 0.14 -0.09 10.12 0.09 MCH, Inc 0.37 0.09 -0.11 0.08 0.11 0.04
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