Standand devition of the Market I 1. What is the epected etum ona portfelio comprised of S000 of Suck A and 54000 of Sock B7 2. Wht is the Stundand deviation of this portilio 3. Does it make sense to conbine these two in this way? Pease explain why. ition
Standand devition of the Market I 1. What is the epected etum ona portfelio comprised of S000 of Suck A and 54000 of Sock B7 2. Wht is the Stundand deviation of this portilio 3. Does it make sense to conbine these two in this way? Pease explain why. ition
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.16P
Related questions
Question
![EXTRA RISK PROBLEMS
Sanck A
Sk
Expected Retun
Standand Deviatim
12
75
16
Comelation cnefficieit wth
the Market
Comelation coeficient with
Stock B
Risk fre e 2%
Expected etu on the Market 12
Standund deviation of the Market E
1. What is the expected retum on a portfolio comprised of S60o00 of Suck A and S4000 of
Sock B7
2. Whe is the Stnderd deviation of this portidio?
3. Does it make sense to combine these two in this way? Pease explain why.
4 What is the ocoefficient of variation for Stock A? What is the coefficient of variation
for Stock B?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2cee76db-1e60-4ba1-83ef-cc46940183a4%2F9227bd58-d2ef-46d6-a610-b4153574bb1c%2Fno3dp5f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXTRA RISK PROBLEMS
Sanck A
Sk
Expected Retun
Standand Deviatim
12
75
16
Comelation cnefficieit wth
the Market
Comelation coeficient with
Stock B
Risk fre e 2%
Expected etu on the Market 12
Standund deviation of the Market E
1. What is the expected retum on a portfolio comprised of S60o00 of Suck A and S4000 of
Sock B7
2. Whe is the Stnderd deviation of this portidio?
3. Does it make sense to combine these two in this way? Pease explain why.
4 What is the ocoefficient of variation for Stock A? What is the coefficient of variation
for Stock B?
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