You have been asked to analyze the standard deviation of a portfolio composed of the following three

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You have been asked to analyze the standard deviation of a portfolio composed of the following three assets:

Investment Expected Return Standard Deviation Sony Corporation 11% 23%

Tesoro Petroleum 9% 27%

Storage Technology 16% 50%

You have also been provided with the correlations across these three investments:

Sony Tesoro Storage Tech Sony 1.00 -0.15 0.20 Tesoro -0.15 1.00 -0.25 Storage Tech 0.20 -0.25 1.00 Estimate the variance of a portfolio, equally weighted across all three assets.

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Applied Corporate Finance

ISBN: 9788126537884

3rd Edition

Authors: Aswath Damodaran

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Question Posted: Jul 31, 2024 07:00 AM

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You have been asked to analyze the standard deviation of a portfolio composed of the following three

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Applied Corporate Finance

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