
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 8, Problem 6PS
A
Summary Introduction
To calculate: The standard deviations of A & B stocks.
Introduction: The Standard Deviation of a stock tells us historical volatility of an investment. For instance, a volatile stock carries a high standard deviation, and a stable stock carries a low standard deviation.
B
Summary Introduction
To Calculate: Supposing a portfolio is constructed; calculate the expected return, beta, standard deviation, and nonsystematic standard deviation of the portfolio constructed.
Introduction: The Standard Deviation of a stock tells us historical volatility of an investment. For instance, a volatile stock carries a high standard deviation, and a stable stock carries a low standard deviation.
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