Finance Assignment
Suppose an investor is interested in investing 20% in Hewly Packers (HPK) and 80% in General Minting (GMIN). The table below provides data on the last five years of prices and dividends paid for the two stocks. (Use of excel is permissible)
Year Hewly Packers General Minting
Price Div Price Div
2013 $45.25 $1.25 $32.25 $0.75
2014 46.50 1.25 32.50 0.75
2015 47.50 1.25 33.62 0.75
2016 46.25 1.25 33.25 0.75
2017 47.75 1.25 34.37 0.75
2018 48.87 1.25 35.12 0.75
a) Calculate the returns for HPK and GMIN separately.
b) Calculate the expected return for HP and GM separately.
c) Calculate the standard deviation for HP and GM separately.
d) Calculate the portfolio expected return.
e) Calculate the correlation coefficient.
f) Calculate the portfolio standard deviation.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.