Solve - -A 10 10 B 20 12 C 8 3 D 50 1 E 45 20-What does the...

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Solve the following problem showing table, estimate(a) the average return and volatility for each stock.(b) the covariance between the stocks, and (c) the correlation between the two stocks. Year 2004 2005 2006 2007 2008 2009 stock A -10% 20% 5% -5% 2% 9% stockB 21% 7% 30% -3% -8% 25% Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below stock price/share(s) number of shares outstanding (millions) -----------------------------------------------------------------------------------------------------------
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Unformatted text preview: -----------------------------------------------------------------------A 10 10 B 20 12 C 8 3 D 50 1 E 45 20 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------What does the market portfolio consist of (what are the portfolio weights?). using the data above suppose you are hold a market portfolio,and have invested $ 12,000 in stock C a) how much have you invested in stock A? b0 how many shares of stock c do you hold? c) if the price of stock C suddenly drops to $ 4 per share, what would you need to make maintain a market portfolio?...
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