How do you calculate standard deviation of a portfolio?
On the other hand, Fund B has a Standard Deviation of 14, which means its return can vary between -2% to 26% (by adding and subtracting 14 from the average return)….Example.
| Particulars | Fund A | Fund B |
|---|---|---|
| Average Rate of Return for the Last 3 Years | 12% | 12% |
| Standard Deviation | 8 | 14 |
How do you find the variance of two asset portfolios?
To calculate the variance of a portfolio with two assets, multiply the square of the weighting of the first asset by the variance of the asset and add it to the square of the weight of the second asset multiplied by the variance of the second asset.
How do you calculate the expected return of a two stock portfolio?
Expected return measures the mean, or expected value, of the probability distribution of investment returns. The expected return of a portfolio is calculated by multiplying the weight of each asset by its expected return and adding the values for each investment.
How do you find the standard deviation of a stock?
Calculation
- Calculate the average (mean) price for the number of periods or observations.
- Determine each period’s deviation (close less average price).
- Square each period’s deviation.
- Sum the squared deviations.
- Divide this sum by the number of observations.
How do you calculate portfolio variance and portfolio standard deviation?
The portfolio variance is equivalent to the portfolio standard deviation squared….Formula and Calculation of Portfolio Variance
- w1 = the portfolio weight of the first asset.
- w2 = the portfolio weight of the second asset.
- σ1= the standard deviation of the first asset.
- σ2 = the standard deviation of the second asset.
Where is the shift key on HP 10BII?
To access the golf function on each key, first press the key with the solid gold face, which we will call the {gold shift} key, and then press the desired function key. (Note that the gold shift key is near the lower left corner of the calculator keyboard.)