Question

Question 9: The returns on QRC stock and an investor’s portfolio over three years are given in the table below.

1. Based on this data, compute the volatility of the portfolio and briefly describe how to interpret it.

2. Based on this data, calculate the correlation between QRC and the portfolio, and briefly describe what it means. Show your work.

3. Suppose the portfolio represents the portfolio of all wealth. What is QRC’s market beta?

Year QRC Portfolio

1 5.0% 19.0%

2. -3.0% 14.0%

3 13.0% 9.0%

Note: This has two incomplete answers that are posted and both show different results and neither showed complete work or briefly answer the questions?Yes, Year two is negative three percent.

Answer 1