. Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: Note: The portfolio is composed of 50% of Stock A and 50% of Stock B. a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? a. What is the expected return and standard deviation of returns for each of the two stocks? The expected return of Stock A is ☐ %. (Round to one decimal place.) Data table ... (Click on the following icon ☐ in order to copy its contents into a spreadsheet.) Jan Feb Mar Apr May Stock A 2% 5% - 6% 3% - 2% Jun 4% Stock B - 1% -4% 7% - 2% 3% - 3% Portfolio 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Print Done - ☑
. Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: Note: The portfolio is composed of 50% of Stock A and 50% of Stock B. a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? a. What is the expected return and standard deviation of returns for each of the two stocks? The expected return of Stock A is ☐ %. (Round to one decimal place.) Data table ... (Click on the following icon ☐ in order to copy its contents into a spreadsheet.) Jan Feb Mar Apr May Stock A 2% 5% - 6% 3% - 2% Jun 4% Stock B - 1% -4% 7% - 2% 3% - 3% Portfolio 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Print Done - ☑
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:.
Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: Note: The portfolio is composed of 50% of Stock A and 50% of Stock B.
a. What is the expected return and standard deviation of returns for each of the two stocks?
b. What is the expected return and standard deviation of returns for the portfolio?
c. Is the portfolio more or less risky than the two stocks? Why?
a. What is the expected return and standard deviation of returns for each of the two stocks?
The expected return of Stock A is ☐ %. (Round to one decimal place.)
Data table
...
(Click on the following icon ☐ in order to copy its contents into a spreadsheet.)
Jan
Feb
Mar
Apr
May
Stock A
2%
5%
- 6%
3%
- 2%
Jun
4%
Stock B
- 1%
-4%
7%
- 2%
3%
- 3%
Portfolio
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
Print
Done
-
☑
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