Question aa portfolio of yyc inc and yeg inc stocks has an, Ask an Expert

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Question A

A portfolio of YYC Inc. and YEG Inc. stocks has an expected return of 11%. Use the information in the table to determine the standard deviation of the portfolio (note that the only assets in the portfolio are the two stocks in the Table below)

YYC: E[R]=8%, Standard deviation 7%

YEG: E[R]=12%, Standard deviation 15%

Correlation of both 0.49

Question B

A portfolio consisting of Meow. and Woof. stocks has zero variance. What is the weight of Toronto stock in this portfolio given the information in the Table below? (Note that the only assets in the portfolio are the two stocks in the Table below.)

Meow: E[R]=8%, standard deviation=7%

Woof: E[R}=12%, standard deviation=15%

Correlation = -1

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91269987

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