1. Now calculate the annualized variance and standard deviation for a

QUESTION

1. Now calculate the annualized variance and standard deviation for a portfolio that each month has equal holdings in the two stocks. Is the result more or less than the average of the standard deviations of the two stocks? Why
2. Download the Standard & Poors index for the same period (its symbol is GSPC). Find the beta of each stock and of the portfolio. ( Note: You need to enter the stock returns as the Y-values and market returns as the X-values.) Is the beta of the portfolio more or less than the average of the betas of the two stocks?
1. Refer to the previous problem to drive the standard deviation and variance of 61 month stocks¦

s below IBM Stock Var 0.002% 0.009% SAP Stock Stdev 0.45% 0.94% 2.

ANSWER:

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