Vera holds 2 stocks, A & B, and is wanting to decide on the proper weights for
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Vera holds 2 stocks, A & B, and is wanting to decide on the proper weights for a portfolio. To do that Vera requires the covariance and would like your . Already calculated is (all in % where appropriate):
Ret of Stock A = 3.6
Ret of Stock B = 12
Ret of market = 0.12
Standard deviation of returns on A = 0.25
Standard deviation of returns on B = 0.89
Standard deviation of the market returns = 0.25
Beta of Stock A = 3.6
Beta of Stock B = 12
What is the covariance between the returns of Stock A & B?
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date: