Google Answers Logo
View Question
Q: standard deviation ( No Answer,   2 Comments )
Subject: standard deviation
Category: Business and Money > Finance
Asked by: victor_06-ga
List Price: $5.00
Posted: 22 Oct 2006 20:40 PDT
Expires: 21 Nov 2006 19:40 PST
Question ID: 775944
Q7.	Calculate the standard deviation and expected return for the
portfolio given below, and work out how each stock contributes to the
portfolio?s risk.? (10%)

Stock	%
held	Expected return	Standard deviation	Correlation among stocks
Stock A         Stock B          Stock C  
A	40	15	18	1	0.1	0.4
B	30	16	24	0.1	1	0.5
C	30	20	36	0.4	0.5	1
There is no answer at this time.

Subject: Re: standard deviation
From: livioflores-ga on 22 Oct 2006 23:51 PDT

For references about the formulas used to answer this question please
refer to the following article at Wikipedia:
"Modern portfolio theory": 
(see the Mean and Variance section)

Good luck!!
Subject: Re: standard deviation
From: victor_06-ga on 23 Oct 2006 02:49 PDT
Thank you very much - I could calculate Expected Return as 16.8% and
Standard deviation of the portfolio as 19.31%

How each stock contributes to portfolio risk? What is the formula?  We
have correlation between AB and AC, BA and BC, CA and CB.


Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy