![subject](/tpl/images/cats/mat.png)
Mathematics, 16.06.2020 22:57 xdpugx0
A person is interested in constructing a portfolio. Two stocks are being considered. Let percent return for an investment in stock 1, and percent return for an investment in stock 2. The expected return and variance for stock 1 are and . The expected return and variance for stock 2 are and . The covariance between the returns is σxy = -3.
a. What is the standard deviation for an investment in stock 1 and for an investment in stock 2? Using the standard deviation as a measure of risk, which of these stocks is the riskier investment?
b. What is the expected return and standard deviation, in dollars, for a person who invests
c. What is the expected percent return and standard deviation for a person who constructs a portfolio by investing 50% in each stock?
d. What is the expected percent return and standard deviation for a person who constructs a portfolio by investing 70% in stock 1 and 30% in stock 2?
e. Compute the correlation coefficient for x and y and comment on the relationship between the returns for the two stocks. .
![ansver](/tpl/images/cats/User.png)
Answers: 1
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Another question on Mathematics
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 16:00
Julia is going for a walk through the neighborhood. what unit of measure is most appropriate to describe the distance she walks?
Answers: 1
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 20:10
21 type the correct answer in the box. use numerals instead of words. if necessary, use / for the fraction bar. the solution set of n2 - 14n = -45 is { (separate the solutions with a comma)
Answers: 3
You know the right answer?
A person is interested in constructing a portfolio. Two stocks are being considered. Let percent ret...
Questions
![question](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 04.05.2020 22:59
![question](/tpl/images/cats/geografiya.png)
Geography, 04.05.2020 22:59
![question](/tpl/images/cats/ap.png)
Advanced Placement (AP), 04.05.2020 22:59
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/biologiya.png)
Biology, 04.05.2020 22:59
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 04.05.2020 22:59
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mkx.png)
Arts, 04.05.2020 22:59
![question](/tpl/images/cats/mat.png)
Mathematics, 04.05.2020 22:59
![question](/tpl/images/cats/istoriya.png)
History, 04.05.2020 22:59
![question](/tpl/images/cats/istoriya.png)
History, 04.05.2020 22:59
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 04.05.2020 22:59
![question](/tpl/images/cats/istoriya.png)
History, 04.05.2020 22:59
![question](/tpl/images/cats/mat.png)
Mathematics, 04.05.2020 22:59
![question](/tpl/images/cats/es.png)