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Stock A;Stock B

1;0.09;0.04

2;0.07;0.02

3;0.13;0.06

4;-0.04;0.02

5;0.09;-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

0.42,

What is the expected return and standard deviation of a portfolio of

75?%

stock A and

25?%

stock? B?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92762476

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