A. Compute for EGDL Corporation's Standard Deviation. B. Compute for JSS Corporation's Standard Deviation. C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on his portfolio? D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse individual?
A. Compute for EGDL Corporation's Standard Deviation. B. Compute for JSS Corporation's Standard Deviation. C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on his portfolio? D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse individual?
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
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Listed below are the historical returns of both investment for the past five years
Year
EGDL Corp JSS Corp
1
8.00%
5.32%
12.11
8.23
9.65
-5.23
4
-2.34
-7.45
7.84
3.27
A. Compute for EGDL Corporation's Standard Deviation.
B. Compute for JSS Corporation's Standard Deviation.
C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on
his portfolio?
D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse
individual?
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