Solution-Expected portfolio return on a portfolio

Expected portfolio return on a portfolio

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Reference no: EM133049813

Below is annual stock return data on Hollenbeck Corp. and Luzzi Edit Inc.

Year Hollenbeck Luzzi edit

1 12.5% -5.7%

2 15.25% 0%

3 -16.82% 23.6%

4 7.2% 12.7%

a) What are the average return, variance, and standard deviation for each stock?

b) What is the expected portfolio return on a portfolio composed of

25% Hollenbeck and 75% Luzzi Edit?

50% Hollenbeck and 50% Luzzi Edit?

75% Hollenbeck and 25% Luzzi Edit?

c) Without doing any calculations, would you expect the correlation between the returns on AAB and YYZ's stock to be positive, negative, or zero? Why?

Reference no: EM133049813

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Expected portfolio return on a portfolio

Reference no: EM133049813

Reference no: EM133049813

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