Given the following returns for Stock X and stock Y
|Stock X % return
||Stock Y % return
- Calculate the variance, and standard deviation of each stock return, assume the above is a sample (i.e. divide by n-1 instead of n). Interpret the results for x only.
- Calculate the covariance, and correlation coefficient between both stocks
- Assume a portfolio made of both stocks (60% in stock X and 40% in stock Y) calculate the expected return and standard deviation of the portfolio.
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