Answer the following: a) Elizabeth's Portfolio Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively. Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are perfectly positively correlated 21.3% 19.3% 29% 33% b) In a Poisson distribution, the: mean equals the standard deviation. median equals the standard deviation. mean equals the variance. None of these choices. c) Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively. Find the expected mean of the portfolio. 15.6% 19% 13.5% 11%
QUESTION 12
Answer the following:
a) Elizabeth's Portfolio Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively.
Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are perfectly positively correlated
|
21.3% |
|
19.3% |
|
29% |
|
33% |
b) In a Poisson distribution, the:
|
mean equals the standard deviation. |
|
median equals the standard deviation. |
|
mean equals the variance. |
|
None of these choices. |
c) Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively.
Find the expected mean of the portfolio.
|
15.6% |
|
19% |
|
13.5% |
|
11% |
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