a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. I
f their correlation is 0.47, what is the expected return and standard deviation of a portfolio of 68% stock A and 32% stock B?
1 answer:
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Answer:
y = 2x + 2
Step-by-step explanation:
The equation of a line in slope- intercept form is
y = mx + c ( m is the slope and c the y- intercept )
Calculate m using the slope formula
m = (y₂ - y₁ ) / (x₂ - x₁ )
with (x₁, y₁ ) = (- 1, 0) and (x₂, y₂ ) = (0, 2) ← coordinates of intercepts
m = = 2
Note the line crosses the y- axis at (0, 2) ⇒ c = 2
y = 2x + 2 ← equation of line