Question
Explain formula: Given the following information on two food articles, Please find the diversification return for a weighted portfolio of Coffee and Sugar indexes. Coffee
Explain formula:
Given the following information on two food articles, Please find the diversification return for a weighted portfolio of Coffee and Sugar indexes.
| Coffee | Sugar | |
| Arithmetic Average | 8% | 10% |
| Standard Deviation | 20.00% | 30.00% |
| Variance |
|
|
| Geometric Average | ||
| Portfolio weights | 0.5 | 0.5 |
| Rho | 0.60 |
| 1. | 0.35% | |
| 2. | 0.24% | |
| 3. | 1.20% | |
| 4. | 0.73% |
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
