Reference no: EM131972204
1 Returns on stocks X and Y are listed below:
Period 1 2 3 4 5 6 7
Stock X 8% 0% 3% -2% 5% 12% 7%
Stock Y 5% -2% 4% 7% 1% 12% -3%
What is the correlation of returns on the two stocks?
Please round your answer to the nearest hundredth.
Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.
2 Returns on stocks X and Y are listed below:
Period 1 2 3 4 5 6 7
Stock X 3% -2% 9% 6% -1% -4% 11%
Stock Y 1% -4% 7% 12% 3% -2% -1%
Consider a portfolio of 20% stock X and 80% 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 0.123).
3 Returns on stocks X and Y are listed below:
Period 1 2 3 4 5 6 7
Stock X 3% -2% 9% 6% -1% -4% 11%
Stock Y 1% -4% 7% 12% 3% -2% -1%
Consider a portfolio of 20% stock X and 80% stock Y.
What is the (population) variance of portfolio returns?
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.
4 Summary statistics for returns on two stocks X and Y are listed below.
Mean Variance
Stock X 4.88% 0.005000
Stock Y 3.71% 0.007000
The covariance of returns on stocks X and Y is 0.002700. Consider a portfolio of 60% stock X and 40% 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 0.123).
5 Summary statistics for returns on two stocks X and Y are listed below.
Mean Variance
Stock X 2.71% 0.003000
Stock Y 3.16% 0.005000
The covariance of returns on stocks X and Y is 0.003900. Consider a portfolio of 70% stock X and 30% 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.