Given That X Is the Yearly Proportional Return for Stock

question 50

Essay

Given that x is the yearly proportional return for stock G and y is the yearly proportional return for stock H,μ_x = .16,μ_y = .07,σ_x = .11,σ_y = .11,and σ_xy² = .0321.Find the mean and standard deviation of the portfolio return: P = .5x + .5y.

---

Definitions:

Copyright

The exclusive right that is granted by the federal government to sell and reproduce literary, musical, or artistic works for a period of time.

Plant Asset

Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as machinery, buildings, and equipment.

Machine Account

An account used in bookkeeping to track the costs and depreciation of a company's machinery.

Residual Value

Estimated value of an asset after all the allowable depreciation has been taken.