Question
Stocks A and B have the following? returns: Stock A Stock B 1 0.10 0.06 2...
Stocks A and B have the following? returns:
|
Stock A |
Stock B |
||
|
1 |
0.10 |
0.06 |
|
|
2 |
0.07 |
0.02 |
|
|
3 |
0.15 |
0.05 |
|
|
4 |
?0.05??? |
0.01 |
|
|
5 |
0.08 |
?0.02??? |
a. What are the expected returns of the two? stocks?
b. What are the standard deviations of the returns of the two? stocks?
c. If their correlation is 0.46?, what is the expected return and standard deviation of a portfolio of 70?% stock A and 30% stock? B?
Homework Answers
Answer #1
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