Returns on the Stock of First Boston and Midas Metals

question 30

Essay

Returns on the stock of First Boston and Midas Metals for the years 2010-2013 are shown below.

a.Compute the average annual return for each stock and a portfolio consisting of 50% First Boston and 50% Midas.
b.Compute the standard deviation for each stock and the portfolio.
c.Are the stocks positively or negatively correlated and what is the effect on risk?

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