1. (14 points) You have a portfolio made up of the following three assets with known means, standard deviations, and correlations of monthly returns: CVS 1 monthly return Correlation Matrix Weight Asset mean std dev Asset Apple Amazon 50% Apple 3.06% 8.1% Apple 1 30% Amazon 2.84% 7.9% Amazon 0.39 1 20% CVS 0.42% 8.4% CVS 0.03 0.31 a. What is the expected monthly return on this portfolio? b. What is the monthly portfolio standard deviation? c. What is the probability that this portfolio will have a negative return in one month? d. What is the probability that this portfolio will have a return greater than 4% in a month? Over one year, what is the probability that the average of the monthly returns for this portfolio will be negative? fp = WIOR, TW2. . Rat Wz. R3 2 8.847 +0.2.0422. = 2.4664 e