Question: Week 0.1 -10% -35% Below Ave 0.2 2% 0 Average 0.4 12% 20% Above Ave 0.2 20% 25% Strong 0.1 38% 45% Expected Return 12%
| Week | 0.1 | -10% | -35% |
| Below Ave | 0.2 | 2% | 0 |
| Average | 0.4 | 12% | 20% |
| Above Ave | 0.2 | 20% | 25% |
| Strong | 0.1 | 38% | 45% |
| Expected Return | 12% | 14% | |
| Standard Deviation | 12.20% | 20.35% | |
| CV | 102% | 145% |
Stocks X and Y have the following probability distributions of expected future returns. However, the total investment money will be $4000 for X and $6000 for Yin a total of 10000. Based on the data and answers of Question 1:
a. Calculate the expected rate of return for Stock X and Y jointly as the combined portfolio.
b. Calculate the standard deviation of expected returns for X and Y jointly as the combined portfolio.
c. What are the CV for both X and Y jointly?
| Weight of X= | ||
| Weight of Y= | ||
| Sigma of X and Y Portfolio= | ||
| Expected Return for X and Y Portfolio = | ||
| CV for Xand Y Portolio | ||
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