Question: State Probability Return on Stock XXX Cement Return on Stock YYY Cement Return on Stock ZZZ Cement 1 25% 21 23 20 2 15% 19 25 22 3 20% 20 24 24 4 15% 22 22 26 5 Find? 23 26 28 Use the above information and to answer the following: Assume you are the investor who wants to invest in a two stock/security portfolio made from the above Stocks of your choice? a) Find the expected return of your portfolio formed from the stocks of your choice given above AND you decide the weights for the stocks in the portfolio. b) Calculate your returns from the portfolio assuming you invest $ 15000 c) Find the Covariance and correlation coefficient for your portfolio
Question: State Probability Return on Stock XXX Cement Return on Stock YYY Cement Return on Stock ZZZ Cement 1 25% 21 23 20 2 15% 19 25 22 3 20% 20 24 24 4 15% 22 22 26 5 Find? 23 26 28 Use the above information and to answer the following: Assume you are the investor who wants to invest in a two stock/security portfolio made from the above Stocks of your choice? a) Find the expected return of your portfolio formed from the stocks of your choice given above AND you decide the weights for the stocks in the portfolio. b) Calculate your returns from the portfolio assuming you invest $ 15000 c) Find the Covariance and correlation coefficient for your portfolio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question:
|
State |
Probability |
Return on Stock XXX Cement |
Return on Stock YYY Cement |
Return on Stock ZZZ Cement |
|
1 |
25% |
21 |
23 |
20 |
|
2 |
15% |
19 |
25 |
22 |
|
3 |
20% |
20 |
24 |
24 |
|
4 |
15% |
22 |
22 |
26 |
|
5 |
Find? |
23 |
26 |
28 |
Use the above information and to answer the following:
Assume you are the investor who wants to invest in a two stock/security portfolio made from the above
Stocks of your choice?
- a) Find the expected return of your portfolio formed from the stocks of your choice given above AND you decide the weights for the stocks in the portfolio.
- b) Calculate your returns from the portfolio assuming you invest $ 15000
- c) Find the Covariance and correlation coefficient for your portfolio
- d) Justify as to on what basis did you choose these stocks and how did you decide the weights?
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