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Suppose you build a portfolio of 25% in A and 75% in B, calculate expected returns,...

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Finance

Suppose you build a portfolio of 25% in A and 75% in B,calculate expected returns, volatility, and a 95% confidenceinterval for the portfolio.

StockA

StockB

2011

10.00%

6.00%

2012

7.00%

2.00%

2013

15.00%

5.00%

2014

-5.00%

1.00%

2015

8.00%

-2.00%

Answer & Explanation Solved by verified expert
4.1 Ratings (616 Votes)
we calculate average returns for each stock using the AVERAGEfunction in Excel as below we calculate standard deviation for each stock using the STDEVfunction in Excel as below For a portfolio with 25    See Answer
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Transcribed Image Text

Suppose you build a portfolio of 25% in A and 75% in B,calculate expected returns, volatility, and a 95% confidenceinterval for the portfolio.StockAStockB201110.00%6.00%20127.00%2.00%201315.00%5.00%2014-5.00%1.00%20158.00%-2.00%

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