Create a portfolio using the two stocks and information below: Expected Return Standard Deviation Weight in Portfolio Stock A 8.00% 11.00% 42.00% Stock B 9.00% 32.00% 58.00% ---------------------- ---------------------- ---------------------- ---------------------- Correlation...

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Finance

Create a portfolio using the two stocks and informationbelow:
Expected Return Standard Deviation Weight in Portfolio
Stock A 8.00% 11.00% 42.00%
Stock B 9.00% 32.00% 58.00%
---------------------- ---------------------- ---------------------- ----------------------
Correlation (A,B) 0.1300 ---------------------- ----------------------
(Do not round intermediate calculations. Record youranswers in decimal form and round your answers to 4 decimal places.Ex. x.xxxx)

What is the variance of A?
What is the variance of B?
What is the Correlation (A,A)?
What is the Correlation (B,B)?
What is the Covariance (A,A)?
What is the Covariance (A,B)?
What is the Covariance (B,A)?
What is the Covariance (B,B)?
What is the expected return on the portfolio above?
What is the variance on the portfolio above?
What is the standard deviation on the portfolio above?
make sure the answers are correct please

Answer & Explanation Solved by verified expert

4.3 Ratings (948 Votes)

Variance is the square of the standard deviation Standard Deviation of A A 11 Variance of A 112 A2 000121 The variance of B 322 B2 01024 Correlation AA A A 1 See Answer

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Create a portfolio using the two stocks and informationbelow:Expected ReturnStandard DeviationWeight in PortfolioStock A8.00%11.00%42.00%Stock B9.00%32.00%58.00%----------------------------------------------------------------------------------------Correlation (A,B)0.1300--------------------------------------------(Do not round intermediate calculations. Record youranswers in decimal form and round your answers to 4 decimal places.Ex. x.xxxx)What is the variance of A?What is the variance of B?What is the Correlation (A,A)?What is the Correlation (B,B)?What is the Covariance (A,A)?What is the Covariance (A,B)?What is the Covariance (B,A)?What is the Covariance (B,B)?What is the expected return on the portfolio above?What is the variance on the portfolio above?What is the standard deviation on the portfolio above?make sure the answers are correct please

	Expected Return	Standard Deviation	Weight in Portfolio
Stock A	8.00%	11.00%	42.00%
Stock B	9.00%	32.00%	58.00%
----------------------	----------------------	----------------------	----------------------
Correlation (A,B)	0.1300	----------------------	----------------------