Consider the following information on a portfolio of three stocks: a. If your portfolio is invested 40

Question:

Consider the following information on a portfolio of three stocks:

a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected return? The variance? The standard deviation?
b. If the expected T-bill rate is 3.75 percent, what is the expected risk premium on the portfolio?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...