Discussion Post: Corporate Finance
• Compute the average (expected) return and volatility (standard deviation) for shares A and B.
• Determine the covariance and the correlation coefficient between returns on A and returns on B.
• Calculate the expected return and standard deviation for a portfolio P of share A and share B, where the proportion invested in A is 50.28%.
• A second portfolio Q also comprise share A and share B, where the proportion invested in A is 10.00%. %. Where necessary, perform additional calculations and discuss which portfolio is efficient.
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.