An analysis of the stock market produces the following information about the returns of two stocks.
Stock 1 Stock 2
Expected Returns 16% 18%
Standard Deviations 20 30
Assume that the returns are positively correlated with = 0.90.
Find the mean and standard deviation of the return on a portfolio consisting of an equal investment in each of the two stocks.© BrainMass Inc. brainmass.com October 24, 2018, 6:52 pm ad1c9bdddf
Proportion of stock 1=X1=0.5
Proportion of stock ...
Solutions describes the steps in finding mean and standard deviation of mixed portfolio. Expected Return and standard deviation of Individual stocks are given.
Sample Distribution - New York Stock Exchange
This question has to deal with the sampling distribution of the sample mean.
Please see attached file for full problem description.
Suppose that the percentage returns for a given year for all stocks listed on the New York Stock Exchange are approximately normally distributed with a mean of 12.4% and a standard deviation of 20.6%. Consider drawing a random sample of n=5 stocks from the population of all stocks and calculating the mean return, x, of the sampled stocks. Find the mean and the standard deviation of the sampling distribution of x, and find an interval containing 95.44% of all possible sample mean returns.View Full Posting Details