# FION/419 week 4 discussion question 2

Mar 15th, 2015
Anonymous
Category:
Price: \$5 USD

Question description

As a basis for understanding the expected performance of a basket of investments (a portfolio of stocks, for example), it is good to consider Table 5-7 on page 242. Here, there are two assets, maybe representing two different stocks, and the expected return on an investment in each of those assets. Each year, the assets provide different returns. In the table, half of the portfolio of assets is comprised of the first asset and the rest of the portfolio is comprised of the second asset. The expected return on the portfolio over five years is simply the average of the expected returns on the portfolio each year. The standard deviation of the annual portfolio returns is calculated using formula 5.3a. on page 236. If you do not understand how to use this formula, study more and let me know if you are still having problems.

(Top Tutor) Steve T
School: UT Austin

Studypool has helped 1,244,100 students

Review from student
Anonymous
" Excellent job "

1829 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors