What is annualized portfolio standard deviation

Assignment Help Financial Management

Reference no: EM131984190

Below are a set of prices for Facebook (FB) and Southwest Airlines (LUV) over the last 3 months. Keep in mind that we normally would not calculate the below statistics for such a short time span, as your answers will be heavily skewed by recent market activity.

FB LUV

12/1/16 115.05 49.84

1/1/17 130.32 52.31

2/1/17 135.54 57.80

3/1/17 137.42 58.88

Only need answer for number 2/3, but the questions build off each other

1.Assume you invest 60% of your portfolio in FB and 40% in LUV. What is your annualized portfolio expected return?

2. Following from part (e), what is your annualized portfolio standard deviation?

3 In words, describe what would have happened to your response to part (f) if the correlation between FB and LUV the assets had been closer to 1.

Reference no: EM131984190

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