标题: Return on a Portfolio [打印本页] 作者: anshultongia 时间: 2011-7-11 19:08 标题: Return on a Portfolio
I have two stocks - A and B. I know the following for each stock: expected return, standard deviation, and price per share. I also know the covariance between the two stocks.
How do I find the expected return and standard deviation of a portfolio that consists of 50 shares of stock A, partially financed by a short sale of 25 stocks of B?作者: Pegasus2008 时间: 2011-7-11 19:08
Let's say Stock A's price is $5 while Stock B has a price of $2.
50 stocks A require investment of $250. We can get $50 by short selling Stock B.
Our total portfolio comprises of (+$250 & -$50) or weights of (+125% & -25%)
Using these weights, in addition to expected return, standard deviation, and covariances you can find expected return and standard deviation.作者: kickthatcfa 时间: 2011-7-11 19:08
