1. Compare the portfolio risk (standard deviation) against the average standard deviation of the portfolio components. In the class, we referred to it as an ad hoc calculation. What’s the extent of diversification benefit? Does the diversification benefit, for each two stock portfolio, appear to be related to the correlation between the pairs of stocks? Discuss in one paragraph.
2.Discuss the riskiness of each stock (item 1), and portfolio risk reduction in item
3. What is your expectation regarding the future risk of each of these stocks, based on your calculations and based on any other additional factors. In addition to the written report You need to turn in a properly labeled spreadsheet of data and regression statistics
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]