1. returns on stocks X and Y are listed below:
Period 1 2 3 4 5 6 7
Stock X 3% 1% 3% 8% 3% 6% -4%
Stock Y 5% -1% 0% 6% 2% 1% 5%
What is the (population) covariance of returns on the two stocks?
Please round your answer to six decimal places.
Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.
2. Period 1 2 3 4 5 6 7
Stock X 0% -3% -1% 1% 12% -5% 6%
Stock Y 4% -1% 2% 4% -5% -2% 5%
Consider a portfolio of 80% stock X and 20% stock Y.
What is the mean of portfolio returns?
3. Period 1 2 3 4 5 6 7
Stock X -1% -5% -1% -1% 11% 12% 0%
Stock Y 7% 5% -4% 2% 9% 6% 1%
Consider a portfolio of 90% stock X and 10% stock Y.
What is the (population) standard deviation of portfolio returns?
Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.
Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
4. Summary statistics for returns on two stocks X and Y are listed below.
Mean Variance
Stock X 3.66% 0.004000
Stock Y 2.50% 0.004000
The covariance of returns on stocks X and Y is 0.001000. Consider a portfolio of 80% stock X and 20% stock Y.
What is the mean of portfolio returns?
Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.1233
5. Summary statistics for returns on two stocks X and Y are listed below.
Mean Variance
Stock X 3.30% 0.003000
Stock Y 2.86% 0.004000
The covariance of returns on stocks X and Y is 0.002800. Consider a portfolio of 90% stock X and 10% stock Y.
What is the standard deviation of portfolio returns?
Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel