Question

Week 0.1 -10% -35% Below Ave 0.2 2% 0 Average 0.4 12% 20% Above Ave 0.2...

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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