You have $10,000 and want to invest $4,000 in Stock A, and $6,000 in Stock B.
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Rate of Return
|
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A
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B
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Probability
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0.5
|
14%
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8%
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0.5
|
10%
|
18%
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1. What is expected rate of return for A?
2. What is the variance of A?
3. What is the standard deviation for A?
4. What is the coefficient variation for A?
5. What is expected rate of return for B?
6. What is variance of B?
7. What is the standard deviation for B?
8. What is coefficient variation for B?
9. What is the expected return of the 2-security portfolio?
10. What is the co-variance of A and B?
11. What is the correlation coefficient of A and B?
12. What is the variance of the 2-security portfolio?
13. What is the standard deviation of the 2-security portfolio?
14. What is the coefficient variation of the 2-security portfolio?