

Subject:
standard deviation
Category: Business and Money > Finance Asked by: victor_06ga 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: liviofloresga on 22 Oct 2006 23:51 PDT 
Hi!! 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) http://en.wikipedia.org/wiki/Modern_portfolio_theory Good luck!! 
Subject:
Re: standard deviation
From: victor_06ga 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. Thanks 
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