What is the standard deviation for each portfolio of the two stocks using the various percentages allocated to each (50%-50%, 75%-25%, 25%-75%)
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What is the standard deviation for each portfolio of the two stocks using the various percentages allocated to each (50%-50%, 75%-25%, 25%-75%)
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- Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?a. What is the expected return for each stock b. What is the standard deviation for each stock, the expected return of the portfolio of the two stocks using the various percentages allocated to each (50%-50%, 75%-25%, 25%-75%)What is the beta stock of each stock and the beta portfolio of the two stocks using the percentages allocated to each (50%-50%, 75%-25%, 25%-75%)
- Using the data in the following table, calculate the volatility (standard deviation) of a portfolio that is 75% invested in stock A and 25% in stock B.An investment portfolio has 45% invested in stock A and 55% invested in stock B. The standard deviations of A and B are 12% and 17%, respectively, and the portfolio’s standard deviation is 14%. What is the correlation coefficient between the two stocks?Given the following information, calculate the expected return and standard deviation for a portfolio that has 35 percent invested in Stock A, 45 percent in Stock B, and the balance in Stock C.
- A portfolio is invested 10 percent in Stock G, 37 percent in Stock J, with remainder in Stock K. The expected returns on these stocks are 10 percent, 10.95 percent, and 15.59 percent, respectively. What is the portfolio's expected return? Answer to two decimals.Suppose each stock in Andre’s portfolio has a correlation coefficient of 0.4 (ρ = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 35%, the portfolio’s standard deviation (σpσp) most likely is 35%.A portfolio is comprised of equal weights of two stocks labeled Stock X and Stock Y. The covariance between Stock X and Stock Y is 0.10. The standard deviation of Stock X is 0.50, and the standard deviation of Stock Y is 0.50. Which of the following comes closest to the correlation coefficient between Stock X and Stock Y? Select one: a. 0.60 b. 0.50 c. 1.00 d. 0.00 e. 0.40
- PLEASE EXPLAIN HOW ANSWERS WERE FOUND Using the data in the following table,calculate the volatility (standard deviation) of a portfolio that 54% is invested in stock A and 46% in stock B.An investment portfolio has equal proportions invested in five stocks.The expected returns and standard deviations (both in percent per year) are (8, 3),(5, 2), (12, 8), (7, 9), (14, 15). What are average return and standard deviation forthis portfolio?You are given the following information regarding prices for a sample of stocks.a. Construct a price-weighted index for these three stocks, and compute the percentagechange in the index for the period from T to T + 1. b. Construct a value-weighted index for these three stocks, and compute the percentagechange in the index for the period from T to T + 1. c. Briefly discuss the difference in the results for the two indexes.