SolutionQuiz05

# SolutionQuiz05 - /rt luiz V: Statistics UGBA 103 The table...

This preview shows pages 1–2. Sign up to view the full content.

/rt luiz V: Statistics UGBA 103 The table below lists the possible fioint) realizations of stock X,Y and the risk-free security as well as the associated probabilities: Probability Return on Security X Return on Securitv Y Risk-free security U3 -6% 0 lo r/6 0% - r.5% I% It6 3% - 15% I% l13 r2% 7.5% t% a) Calculate the expected return of all securities b) Calculate the variance of all securities c) Calculate the standard deviation (volatility) of all securities d) Calculate the covariance and the correlation coefficient between stock X and Y e) What is the covariance between stock X and the risk-free security? D What is the expected return and standard deviation on a portfolio with 20Yo of stock X and 80% of stock Y? your result of question f) ! Clearly highlight (e.g. circle) your final answers for each question. You can use the back of the sheet to answer the questions. ..1 \ ;; ;il"-tii. iiZ ,o1 * '16 r^. o,s1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 10/02/2009 for the course UGBA 08547 taught by Professor Odean during the Spring '09 term at University of California, Berkeley.

### Page1 / 2

SolutionQuiz05 - /rt luiz V: Statistics UGBA 103 The table...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online