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  • Chapter 8 Equations

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    chirag3110
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    This document contains 8 equations related to calculating averages, standard deviations, correlations, betas, and other statistical measures across a portfolio of assets. Specifically, it provides the equations for calculating the average return and standard deviation of a portfolio, the correlation between two assets in a portfolio, how to calculate a stock's beta based on its correlation with the market, and equations for calculating a portfolio's expected return, standard deviation, and other risk measures based on the characteristics of the individual assets.

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    This document contains 8 equations related to calculating averages, standard deviations, correlations, betas, and other statistical measures across a portfolio of assets. Specifically, it provides the equations for calculating the average return and standard deviation of a portfolio, the correlation between two assets in a portfolio, how to calculate a stock's beta based on its correlation with the market, and equations for calculating a portfolio's expected return, standard deviation, and other risk measures based on the characteristics of the individual assets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    18 views1 page

    Chapter 8 Equations

    Uploaded by

    chirag3110
    This document contains 8 equations related to calculating averages, standard deviations, correlations, betas, and other statistical measures across a portfolio of assets. Specifically, it provides the equations for calculating the average return and standard deviation of a portfolio, the correlation between two assets in a portfolio, how to calculate a stock's beta based on its correlation with the market, and equations for calculating a portfolio's expected return, standard deviation, and other risk measures based on the characteristics of the individual assets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 1

    Chapter 8 Equations

    rA = (pj )(rj )
    j=1
    n

    A =[ (rj r) 2 pj ]
    j=1
    n

    A,B = (rA,j rA) (rB,j rB,) pj


    j=1

    A,B = (A,B )(A)(B)


    n

    p = (wj )(j )
    j=1
    n

    rp = (wi )(r i )
    i=1

    p = [(wA 2)(A 2) + (wB 2)( B 2) + (2)(wA)(wB)(A,B)]


    j = j,m /(m 2)
    ki = rf + i (rm - rf )
    ^

    z = (r r) /

    = ----r

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