Ethan Lewis Finan202[10884].docx - Lewis Ethan WMS Assignment Cover Sheet Family Name Lewis Student ID Number 1344923 Paper Code FINAN202-19B Tutorial 2

Ethan Lewis Finan202[10884].docx - Lewis Ethan WMS...

This preview shows page 1 - 3 out of 5 pages.

Lewis, Ethan WMS Assignment Cover Sheet Family Name: Lewis First Name: Ethan Student ID Number: 1344923 Paper Code: FINAN202-19B Tutorial: 2 pm - 3 pm, Tuesday, MSB 0.26 Assignment Name: Individual Assignment 1 Due Date: September 6, 2019. Please fill in the above information and then save this page as the first page of your assignment to be submitted. If you are submitting this on behalf of a Group please ensure you note all group member names and student ID numbers on this form below:
Image of page 1

Subscribe to view the full document.

Lewis, Ethan Question 1 a) If returns on two stocks are highly correlated it can be represented by the correlation coefficient formula which gives a number from -1 to +1. A highly correlated stock would have a coefficient of +1 meaning if stock A prices rise then stock B would follow. If there is no correlation the coefficient would be 0 and -1 (negative) which means the relationship between the stocks are opposite 100% of the time. b) An efficient portfolio can be looked at when it comes to the efficient frontier which graphs the set of portfolios that offer the greatest return for the defined risk. There are two ways to produce the frontier. Maximize the expected return for any level of SD or is minimizing the SD for any level of expected return. A simple way of putting it is highest return for its level
Image of page 2
Image of page 3
  • Fall '19
  • Modern portfolio theory, Ethan

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes