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Coefficient of variation for stock a and b

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A hedge fund has created a portfolio using just two stocks. It has shorted $150,000 worth of Stock A and has purchased $100,000 of Stock B. The correlation coefficient between Stock A and Stock B is 0.70 (positive). The expected returns and market conditions of the two stocks are given in the table below:

a) What is the coefficient of variation for Stock A and B?

b) What is the expected return of Stock A and Stock B?

c) What is the expected return of the portfolio?

d) What is the standard deviation of the portfolio?

Reference no: EM132555201

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