Question
(c) Consider Table 1. Calculate the expected return and standard deviation risk of a portfolio comprised of stock 1, stock 2, stock 3, and
(c) Consider Table 1. Calculate the expected return and standard deviation risk of a portfolio comprised of stock 1, stock 2, stock 3, and stock 4. Detail all calculations. Stock 1 Stock 2 Stock 3 Stock 4 Stock 1 Stock 2 Stock 3 Stock 4 Expected return (%) 7% 10% 9% 5% Stock 1 39.6 28.8 18.0 Table 1 Standard deviation (%) 9% 11% 8% 5% Covariance Matrix Stock 2 39.6 35.2 22.0 Stock 3 28.8 35.2 16.0 Weight (%) 0.3 0.2 0.4 0.1 Stock 4 18.0 22.0 16.0
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College Algebra
Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels
12th edition
134697022, 9780134313795 , 978-0134697024
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