From the following information, calculate covariance between stocks A and B and expected return and risk of a portfolio in which A and B are equally weighted. Which stock would be best recommend if investment in individual stock is to be made? Justify the answer using numerical calculations.   Stock A Stock B Expected return 24% 35% Standard deviation 12% 18% Coefficient of correlation 0.65

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Q: of

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.