Expected Return for the Portfolio Assignment
year stock a % stock b%
2007 8 12
2008 21 27
2009 -27 -32
2010 11 18
2011 18 24
show all workings please
calculate the expected return for the portfolio of stock A 60% and stock b 40% weightings
if the distribution of the expected returns is approximately normal, calculate the range of the expected returns for each stock (i.e. + or one std dev about the mean expected return)
what do the results for the expected returns and standard deviations over the 5 year sample for each stock tell you?
if you were an investor that did not like taking risks, which stock wwould you prefer and why?
calculate the covariance between stocks A ad b
calculate the correlation coefficient for stocks A n B
interpret what the correlation coeffcient is telling you about the relationship between stocks A and B. Get Finance homework help today