Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years.
Year ECB WCB
2004 40.00% 40.00%
2005 - 10.00% 15.00%
2006 35.00% -5.00%
2007 -5.00% -10.00%
2008 15.00% 35.00%
a. What is the expected return and risk of each stock?
b. Measured by the standard deviation of returns, by how much would your uncle's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? In other words, what is the difference between portfolio's standard deviation and weighted average of components' standard deviations? (Hint: check the example on page 11-12 on my note).
If this problem can be done using excel, in a way that I can understand the steps I need to take as I go.
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Can you write this program, but in python, I just wanna see what am I doing wrong. thank you
Instructions: The Gas-N-Clean Service Station sells gasoline and has a car wash. Fees for the car wash are $1.25 with a gasoline purchase of $10.00 or more and $3.00 otherwise. Three kinds of gasoline are available: regular at $2.89, plus at $3.09, and super at $3.39 per gallon.
User Request: Write a program that prints a statement for a customer.
Analysis: Input consists of number of gallons purchased (R, P, S, or N for no purchase), and car wash desired (Y or N). Gasoline price should be program defined constant. Sample output for these data is
Enter number of gallons and press <Enter> 9.7
Enter gas type (R, P, S, or N) and press <Enter> R
Enter Y or N for car wash and press Y
************************************** * *
* Gas-N-Clean Service Station *
* March 2, 2004 *
* * * **************************************
Amount Gasoline purchases 9.7 Gallons
Price pre gallons $ 2.89
Total gasoline cost $ 28.03
Car wash cost $ 1.25
Total due $ 29.28
Thank you for stopping
Please come again
Remember to buckle up and drive safely
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