CA 4B Spring 2020 - Word Search wt References Mailings Review View Help Aa A E A ! AaBbCel AaBbccI AaBb C AaBbcc AaB -A E E E 1 Normal 1 No Spac... Heading 1 Heading 2 Title 5 Paragraph Styles ICA #4B Spring 2020 B. You are interested in adding the stock of Alfeta (Alf) to your holdings by taking $2000 from each of Del and Gam. Alf has an expected return of 2.15%, a variance of 1.925; Del has an expected return of 10.45%, a variance of 5.9475; Gam has an expected return of 6.3%, a variance of 38.01. The covariance of Alf with Del is -2.675; the covariance of Alf with Gam is 5.355; and the covariance of Del with Gam is -14.235. a. Calculate the expected return, E(R), of this new portfolio. b. Calculate the risk of this new portfolio. DFO obte 9 w x CA 4B Spring 2020 - Word Search wt References Mailings Review View Help Aa A E A ! AaBbCel AaBbccI AaBb C AaBbcc AaB -A E E E 1 Normal 1 No Spac... Heading 1 Heading 2 Title 5 Paragraph Styles ICA #4B Spring 2020 B. You are interested in adding the stock of Alfeta (Alf) to your holdings by taking $2000 from each of Del and Gam. Alf has an expected return of 2.15%, a variance of 1.925; Del has an expected return of 10.45%, a variance of 5.9475; Gam has an expected return of 6.3%, a variance of 38.01. The covariance of Alf with Del is -2.675; the covariance of Alf with Gam is 5.355; and the covariance of Del with Gam is -14.235. a. Calculate the expected return, E(R), of this new portfolio. b. Calculate the risk of this new portfolio. DFO obte 9 w x