you decide to create a two stock portfolio of stocks A and B, calculate the covariance between the two stocks and the variance of each stock. Use this information to determine the expected return and standard of the minimum variance portfolio between the 2 securities. please show your work
time | A | B |
1 |
18.56 |
12.43 |
2 |
12.34 | 13.45 |
3 | 14.12 | 4.32 |
4 | -1.57 | 8.54 |
5 | 3.12 | 12.21 |
6 | -9.28 | -4.91 |
you decide to create a two stock portfolio of stocks A and B, calculate the covariance between the two stocks and the va...
Calculate the portfolio standard deviation if you put 70% of your money in A and 30% in D. time A B 1 18.56 12.43 2 12.34 13.45 3 14.12 4.32 4 -1.57 8.54 5 3.12 12.21 6 -9.28 -4.91
Can I get Help with number two please?
DI. JUUSUIINUS Name Ryan Conniff Answer each of the problems below using the information provided and SHOW YOUR WORK FOR ALL PROBLEMS. Use this data for problems 1-2. The annual returns for securities A, B, C, D and the Market (S&P 500) are shown below. Remember to show all calculations. t - A, % B, % C, % D, % Mkt, % 1 18.56 18.23 8.43 12.43 12.28 2 12.34 5.24 3.12...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 45% and a standard deviation of return of 9%. Stock B has an expected return of 15% and a standard deviation of return of 2%.The correlation coefficient between the returns of A and B is 0.0025. The risk-free rate of return is 2%. The standard deviation of return on the minimum variance portfolio is _________.
You form a portfolio of stocks. Stock A has an expected return of 2.8%, Stock B has an expected return of 4.4%, and Stock C has an expected return of 7.6%. If 6% of your portfolio is invested in stock A, and 35% of your stock is invested in Stock C, what is your expected portfolio return? (Enter your response as a percentage with two decimal places, ex: 12.34)
You form a portfolio of stocks. Stock A has an expected return of 2.8%, Stock B has an expected return of 4.4%, and Stock C has an expected return of 7.6%. If 6% of your portfolio is invested in stock A, and 35% of your stock is invested in Stock C, what is your expected portfolio return? (Enter your response as a percentage with two decimal places, ex: 12.34)
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 20%, while stock B has a standard deviation of return of 26%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is .035, the correlation coefficient between the returns on A and B is _________.
Question 1: You are planning about putting some money in the stock market. There are two stocks in your mind: stock A and stock B. The economy can either go in recession or it will boom in the coming years. Being an optimistic investor, you believe the likelihood of observing an economic boom is two times as high as observing an economic depression. You also know the following about your two stocks: State of the Economy Probability RA RB Boom...
Please show working for all parts.
1. The annual returns of two stocks are given as follows. Year Stock A Stock B 2011 -10% 21% 2012 2013 20% 5% 7% 30% 2014 -5% -3% 2015 2% -8% 2016 9% 25% (a) Estimate the expected return and volatility of each stock. (b) Estimate the covariance and correlation between two stocks. (c) Find the expected returns and volatilities of portfolios that maintain 100.6% investment in Stock A and 100(1-x)% in Stock B,...
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 18%, while stock B has a standard deviation of return of 24%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is 0.033, the correlation coefficient between the returns on A and B is _________. 0.584 0.140 0.351 0.234
A portfolio is comprised of two stocks, A and B. Stock A has a standard deviation of return of 25% while stock B has a standard deviation of return of 5%. Stock A comprises 20% of the portfolio while stock B comprises 80% of the portfolio. If the variance of return on the portfolio is .0080, the correlation coefficient between the returns on A and B is __________. A. -.975 B. -.025 C. .025 D. .975