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a. If you know the variance of a portfolio es 0.01. What is the standard deviation? If the expected return of the portfolio is 5%,
- a. If you know the variance of a portfolio es 0.01. What is the standard deviation? If the expected return of the portfolio is 5%, what is a possible interval where the return can be?
b. If the weights on your portfolio composed of three assets are 20%, 30% and 50% and the expected return on the same assets are 4%, 6%, and 7.5%, respectively. What is the expected return on the portfolio?
c. If you invest 20% in asset A and 80% in asset B, and the variances are 0.1 and 0.08, respectively What is the standard deviation of this portfolio is the covariance between A and B is zero?
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