The returns on shares S and T vary depending on the state of economic growth. Required a. Calculate the expected
a. Calculate the expected return and standard deviation for share S.
b. Calculate the expected return and standard deviation for share T.
c. What are the covariance and the correlation coefficient between returns on S and returns on T?
d. Determine a portfolio expected return and standard deviation if two-thirds of a fund are devoted to S and one-third devoted to T.
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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