Question
Create a portfolio using the four stocks and information below: Expected Return Standard Deviation Weight in Portfolio Stock A 18.00% 19.00% 29.00% Stock B 8.00%
Create a portfolio using the four stocks and information below:
Expected Return Standard Deviation Weight in Portfolio
Stock A 18.00% 19.00% 29.00%
Stock B 8.00% 16.00% 28.00%
Stock C 6.00% 31.00% 26.00%
Stock D 8.00% 16.00% 17.00%
Correlation (A,B) 0.5000
Correlation (A,C) 0.5200
Correlation (A,D) 0.8700
Correlation (B,C) 0.4700
Correlation (B,D) 0.2900
Correlation (C,D) 0.1200
(Do not round intermediate calculations. Record your answers in decimal form and round your answers to 4 decimal places. Ex. x.xxxx)
What is the Correlation (A,A)?
What is the Correlation (B,B)?
What is the Correlation (C,C)?
What is the Correlation (D,D)?
What is the Covariance (A,A)?
What is the Covariance (A,B)?
What is the Covariance (A,C)?
What is the Covariance (A,D)?
What is the Covariance (B,A)?
What is the Covariance (B,B)?
What is the Covariance (B,C)?
What is the Covariance (B,D)?
What is the Covariance (C,A)?
What is the Covariance (C,B)?
What is the Covariance (C,C)?
What is the Covariance (C,D)?
What is the Covariance (D,A)?
What is the Covariance (D,B)?
What is the Covariance (D,C)?
What is the Covariance (D,D)?
What is the expected return on the portfolio above?
What is the variance on the portfolio above?
What is the standard deviation on the portfolio above?
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
