Business & Finance Assignment | Custom Assignment Help
October 29th, 2019
Two stocks A and B have expected returns, and a variancecovariance matrix of returns given in Table 1. Table 1 Stock A Stock B E(R) 0.08…0.0225
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a) What is the correlation coefficient between the returns on stock A and stock B?
b) What is the expected return and standard deviation of portfolio S which is invested 80% in stock A and 20% in stock B?
c) If you combine portfolio S with a risk free asset paying a return of 4%, what would be the expected return on a new portfolio V if you desire a standard deviation of 27.9%?
d) Plot in mean-standard deviation space the efficiency frontier between Stock A and Stock B, and identify portfolios S and V.Get business finance assignment homework help today