- Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7 Stock X 3% -2% 9% 6% -1% -4% 11% Stock Y 1% -4% 7% 12% 3% -2% -1% Consider a portfolio of 20% stock X and 80% stock Y. What is the (population) variance of portfolio returns? Please round your answer to six decimal places.

- Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7 Stock X 3% -2% 9% 6% -1% -4% 11% Stock Y 1% -4% 7% 12% 3% -2% -1% Consider a portfolio of 20% stock X and 80% stock Y. What is the (population) variance of portfolio returns? Please round your answer to six decimal places.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Q3 - Returns on stocks X and Y are listed below:

Period 1 2 3 4 5 6 7
Stock X 3% -2% 9% 6% -1% -4% 11%
Stock Y 1% -4% 7% 12% 3% -2% -1%

Consider a portfolio of 20% stock X and 80% stock Y.

What is the (population) variance of portfolio returns?

Please round your answer to six decimal places.

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Step 2: Compute the correlation coefficient:

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Step 3: Calculate the standard deviation for each stock:

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Step 4: Compute the (population) variance of portfolio returns:

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