EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 10, Problem 7PS

A

Summary Introduction

To calculate: Expected profit and standard deviation of the portfolio.

Introduction: Expected profit of the portfolio is tells us about the possibility of profit by taking some assumptions and compare with the initial capital. Standard deviation tells us about the fluctuations about the mean value.

B

Summary Introduction

To calculate: Standard deviation for the 50 stocks and 100 stocks.

Introduction: Standard deviation is defined as the variations of the values around mean value. The low standard deviation tells us about the values which are close to the mean value where as the large value of standard deviation tells us that values are wide spread from the mean value.

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Portfolio return, variance, standard deviation; Author: MyFinanceTeacher;https://www.youtube.com/watch?v=RWT0kx36vZE;License: Standard YouTube License, CC-BY