You are faced with a choice of shares from among the three
detailed below
return on investments (%)
X Ltd
return on investments (%)
Y Ltd
return on investments (%)
Z Ltd
a) Calculate the expected return and Risk for each share
b) Calculate the Covariance between each pair of investments
c) Calculate the Correlation Coefficient between each pair of
investments
d) Calculate the expected return and risk of the two share
portfolio formed by combining together equal proportions. (i.e. 50%
X and 50% Y, 50% X and 50% Z, 50% Z and 50% Y )
You are faced with a choice of shares from among the three detailed below return on investments (%) X Ltd return on inve
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