2. The formula for the standard deviation of a portfolio o, consisting of 3 assets is given below. Note that the subscripts denote assets.in this case Asset AB.crc.and that o is the variance of the expected return to asset A. while a is the oovariance between the expected retumofasset A and asset B. Finally, the weight or share of asset A in the portfolio is given by w You have the following information on three assets.The values ae all in peroemages, which work in-the whieh is harder but werks be sure-teeeevertheekHe-peseentege feryeurfinelenswerd Correction: You should convert to rate first! My apologies) 0.04 and a 4. This wil give a, as a rate. Then muhiply by 100 to get as In the formula use Asset A Asset B Asset C Expected return Variance 100 Fall 2015 Marshall Report with A with B with C You hold a portfolio consisting of an equal share ofalthree assets which has the expected return of 6% and the standard deviation of approximately 8.6%. You ae considering dropping Asset A from your portfolio and moving a portfolio consisting ofhalf each of asset B and C. A. (10 Compute the expected return and standard deviation of the new partolio consisting of Asset B and Asset C B. Using the logic of the efficient frontier and theappropriate calculations, explain whether this portfolio shift is a good idea for a rational invesor like yourself. 2. The formula for the standard deviation of a portfolio o, consisting of 3 assets is given below. Note that the subscripts denote assets.in this case Asset AB.crc.and that o is the variance of the expected return to asset A. while a is the oovariance between the expected retumofasset A and asset B. Finally, the weight or share of asset A in the portfolio is given by w You have the following information on three assets.The values ae all in peroemages, which work in-the whieh is harder but werks be sure-teeeevertheekHe-peseentege feryeurfinelenswerd Correction: You should convert to rate first! My apologies) 0.04 and a 4. This wil give a, as a rate. Then muhiply by 100 to get as In the formula use Asset A Asset B Asset C Expected return Variance 100 Fall 2015 Marshall Report with A with B with C You hold a portfolio consisting of an equal share ofalthree assets which has the expected return of 6% and the standard deviation of approximately 8.6%. You ae considering dropping Asset A from your portfolio and moving a portfolio consisting ofhalf each of asset B and C. A. (10 Compute the expected return and standard deviation of the new partolio consisting of Asset B and Asset C B. Using the logic of the efficient frontier and theappropriate calculations, explain whether this portfolio shift is a good idea for a rational invesor like yourself