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Consider that you have $4,332,089 to invest across three assets using the price weighted methodology. Your analysis of these assets has provided the information in

Consider that you have $4,332,089 to invest across three assets using the price weighted methodology.

Your analysis of these assets has provided the information in the two tables below.

To 2 decimal places answer the following questions. (Note: numbers in red are negative)

Asset A B C
Price at beginning of the year (in $) 65.77 137.22 88.14
Expected price at the end of the year (in $) 77.22 164.77 104.12
Standard deviation (%) 31.45 44.59 38.06

Correlation A B C
A 1.00 -0.17 0.78
B -0.17 1.00 0.66
C 0.78 0.66 1.00

Required

  1. What is the expected compound annual growth rate of return for this portfolio, in percentage terms?

  1. In dollars and cents, what is the expected value of this portfolio after 12 months?

  1. What is the standard deviation of this portfolio, in percentage terms?

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