4. Use the following information to answer the questions below: Day KLCI Stock A Stock B Return Return Return January February March 10% 5% 15% 15% 7% 8% 6% 2% 3% April Мay -2% -3% -5% -8% -5% -14% i. Calculate expected return and standard deviation for both stocks. ii. Find out the correlation between Stock A and Stock B, calculate portfolio risk and return based on following combination: a. 70% invested in Stock A, 30% in Stock B b. 50% invested in Stock A, 50% in Stock B c. 30% invested in Stock A, 70% in Stock B

4. Use the following information to answer the questions below: Day KLCI Stock A Stock B Return Return Return January February March 10% 5% 15% 15% 7% 8% 6% 2% 3% April Мay -2% -3% -5% -8% -5% -14% i. Calculate expected return and standard deviation for both stocks. ii. Find out the correlation between Stock A and Stock B, calculate portfolio risk and return based on following combination: a. 70% invested in Stock A, 30% in Stock B b. 50% invested in Stock A, 50% in Stock B c. 30% invested in Stock A, 70% in Stock B

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 17PROB

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