Standard deviation for each stock and for the portfolio


Assignment:

Please assist with the following problems. Provide step by step calculations for each.

Year    Stock A's Returns (rA)    Stock B's Returns (rB)
2000    -18%    14.5
2001    33        21.8
2002    15        30.5
2003    -0.5      -7.6
2004    27        26.3

1. Calculate the standard deviation for each stock and for the portfolio

2. Calculate the coefficient of variation for each stock and for the portfolio.

If you were a risk averse investor- which stock is better?

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Accounting Basics: Standard deviation for each stock and for the portfolio
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