Find the mean and standard deviation of the return

Assignment Help Econometrics

Reference no: EM1376045

An analysis of stock market manufactures the following data about the returns of two stocks.

Stock 1 Stock 2
Expected Returns 16% 18%
Standard Deviations 20 30

Suppose that the returns are positively correlated with = 0.90.

Find the mean and standard deviation of the return on a portfolio consisting of an equal investment in each of the two stocks.

Reference no: EM1376045

Questions Cloud

Kyle was having clam chowder soup in a restaurant : Kyle was having clam chowder soup in a restaurant when a very small piece of bone lodged in his throat

Amount of outstanding checks : Fitzgerald Company wrote checks adding $17,080 during October and $18,650 through November. - Find what was amount of outstanding checks on 30th November?

Find out the cycle time also the appropriate number : Find out the cycle time also the appropriate number of workstations to produce the 40 units per day. Elucidate how would the target cycle time change if you required producing 50 units per day.

Deliberate an organization development and change effort : Deliberate an organization development and change effort that has been endeavoured in some organization with which you are familiar

Find the mean and standard deviation of the return : An analysis of stock market manufactures the following data about the returns of two stocks.

Calculate the financial ratios for both fiscal years : Fundamentals of Corporate Finance After you have completed your income statement and balance sheet, calculate the subsequent financial ratios for both fiscal years

Calculate whether or not shangri-la hotels'' heavy investment : Calculate whether or not Shangri-La Hotels' heavy investment in employee development yields a profitable return to the company.

Find out the takt time for this part : Concept of providing wireless access to workers from the perspective of worker benefits also the effect to the organization.

Annual financial statement : Examine the strengths and weaknesses of the Form 10-K information and disclosures in terms of whether they give relevant and reliable information to investors.

User Account

All Pages