Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the equally-weighted portfolio consisting of Amazon, Pfizer and Exxon. The standard deviations of returns on these stocks respectively are: 50%, 25% and 30%. The
Consider the equally-weighted portfolio consisting of Amazon, Pfizer and Exxon. The standard deviations of returns on these stocks respectively are: 50%, 25% and 30%. The correlation matrix is given below: Amazon Pfizer Exxon Amazon 1 Prizer 0.6 1 Exxon 0.7 0.3 1 What is the standard deviation of this equally-weighted portfolio of three stocks? Question 10 options: 0.075 or 7.5% 0.44 or 44% 0.1574 or 15.74% 0.3755 or 37.55% 0.2995 or 29.95%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started