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ask 2: You are managing an equal-weighted portfolio of stocks on behalf of your companys treasury. Assume thatstock A and stock B are two risky

ask 2:

You are managing an equal-weighted portfolio of stocks on behalf of your companys

treasury. Assume thatstock A and stock B are two risky assets. C is a risk-free asset.

The details of these stocks are below:

Stock A

Stock B

C (Risk-free asset r

Average return

7.00%

15.00%

2.00%

Variance of return

0.0064

0.0196

Sigma of return

8.00%

14.00%

Covariance of returns

0.0011

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