You have the following information on two securities in which you have invested: a. Which stock is

Question:

You have the following information on two securities in which you have invested:

a. Which stock is riskier in a portfolio context? Which stock is riskier if you are considering them as individual assets (not part of a portfolio)?
b. Compute the expected return on the portfolio.
c. If the securities have a correlation of +0.60, compute the standard deviation of the portfolio.
d. Compute the beta of theportfolio.

Expected Return
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...