Question: Using the following information find expected return, variance and standard deviation of Stock A and B. Also find the covariance and correlation between Stock A
Using the following information find expected return, variance and standard deviation of Stock A and B. Also find the covariance and correlation between Stock A and B.
| States | Probability | Return on Stock A | Return on Stock B |
| 1 | 20.00% | 26.00% | 9.00% |
| 2 | 30.00% | 18.00% | 15.00% |
| 3 | 50.00% | 10.00% | 30.00% |
If you invest 10,000 in stock A and 15,000 in stock B what would be your portfolio return and risk. Use information from question 2 if necessary. Please show work for all
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
