Home / Questions / refer to the table of data below and answer the questions that follow
refer to the table of data below and answer the questions that follow
economic state probability of economic state return on stock J return on stock K
bear 0.25 -0.02 0.034
normal 0.60 0.138 0.062
bull 0.15 0.218 0.092
calculate the expected return of each stock
if a portfolio was created with from 30% of stock j and 70% of stock k what is the expected return of the portfolio?
calculate the standard deviation of each stock?
calculate the covariance between the two stocks
calculate the correlation coefficient between the two stocks
what is the portfolio standard deviation?
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