What is the standard deviation of the market


In a two-stock capital market the capitalization of stock X is twice that of stock Y (this should tell you what the weights of stocks X and Y are in the economy). The standard deviation of excess returns on stock X is 35% and 50% on stock Y. the correlation coefficient between the excess returns is 0.75.
a. What is the standard deviation of the market portfolio?
b. What is the beta of each stock?

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Finance Basics: What is the standard deviation of the market
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