Three assets have the following means and variance-covariance matrix: a. Calculate the statistics?mean, variance, standard deviation, covariance,
Question:
Three assets have the following means and variance-covariance matrix:
a. Calculate the statistics?mean, variance, standard deviation, covariance, correlation? for the portfolios.
b. Create a chart of the mean and standard deviation of combinations of the portfolios.
c. Add the individual asset returns to the chart?are the two portfolios on the efficient frontier?
Transcribed Image Text:
A B D Varlance-covarlance matrix Means 10% 12% 2 0.30 0.02 -0.05 0.02 3 0.40 0.06 14% 4 -0.05 0.06 0.60 Portfollo1 Portfollo2 7 Asset1 8 Asset2 9 Asset3 30% 50% 20% 40% 50% 10%
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