Question
a b Expected return 0.1 0.08 SD 0.06 0.05 investment weight 0.3 0.7 covariance 0.0008 0.086 0.586436 0.765791094 =0.3*0.1+0.7*0.08 = 0.086 =(0.3^2)+(0.06^2)+(0.7^2)+(0.05^2)+2*0.3*0.7*0.0008= 0.5866436 =SQRT (0.5866436)
| a | b | |
| Expected return | 0.1 | 0.08 |
| SD | 0.06 | 0.05 |
| investment weight | 0.3 | 0.7 |
| covariance | 0.0008 | |
| 0.086 | ||
| 0.586436 | ||
| 0.765791094 |
=0.3*0.1+0.7*0.08 = 0.086
=(0.3^2)+(0.06^2)+(0.7^2)+(0.05^2)+2*0.3*0.7*0.0008= 0.5866436
=SQRT (0.5866436) = 0.76579109
************PLEASE CHECK MY WORK*******
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Innovation In Public Transport Finance
Authors: Shishir Mathur
1st Edition
1138250139, 978-1138250130
