Question: Using the same stock returns file as above, construct a portfolio with 4 0 % of funds invested in stock A , 6 0 %
Using the same "stock returns" file as above, construct a portfolio with of funds invested in stock A invested in stock B and calculate the following: a Portfolio expected return rp and portfolio standard deviation P points b What can you say about A B P A and B can be computed using the excel function for standard deviation. points Hint: Use excel formula to compute the average return for each stock, rA and rB and the correlation between the two stocks, corrA B Then use the formulas for portfolio expected return rp and portfolio standard deviation, P to compute them. Both of these formulas are in your notes. Year, Market Returns M Stocks A Stocks BYear MA B
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
