Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock Y Mean 5.81% 3.11% Variance 0.004000 0.007000 The covariance of returns on stocks X and Y is 0.002100. Consider a portfolio of 10% stock X and 90% stock Y.

Summary statistics for returns on two stocks X and Y are listed below. Stock X Stock Y Mean 5.81% 3.11% Variance 0.004000 0.007000 The covariance of returns on stocks X and Y is 0.002100. Consider a portfolio of 10% stock X and 90% stock Y.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

2-4

Summary statistics for returns on two stocks X and Y are listed
below.
Stock X
Stock Y
Mean
5.81%
3.11%
Variance
0.004000
0.007000
The covariance of returns on stocks X and Y is 0.002100. Consider
a portfolio of 10% stock X and 90% stock Y.
What is the mean of portfolio returns?
Please specify your answer in decimal terms and round your answer
to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

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