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Q: standard deviation ( No Answer,   2 Comments )
Question  
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
Answer  
There is no answer at this time.

Comments  
Subject: Re: standard deviation
From: livioflores-ga 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_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.

Thanks

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