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Following the three-stock example in Section D to calculate the variances and volatilities of the following portfolios with equal weights : e. 6-stock portfolio consisted

Following the three-stock example in Section D to calculate the variances and volatilities of the following portfolios with equal weights:

e. 6-stock portfolio consisted of Dell, Delta Air, AA, GM, Ford and Anheuser.

f. All 7-stock portfolio.

Microsoft

Dell

Delta Air

AA

GM

Ford

Anheuser

Std.Dev

42%

54%

50%

72%

33%

37%

18%

Correlations:

Microsoft

42%

1

65%

27%

19%

22%

6%

-7%

Dell

54%

65%

1

19%

18%

32%

32%

10%

Delta Air

50%

27%

19%

1

69%

31%

38%

19%

AA

72%

19%

18%

69%

1

35%

58%

11%

GM

33%

22%

32%

31%

35%

1

64%

11%

Ford

37%

6%

32%

38%

58%

64%

1

10%

Anheuser

18%

-7%

10%

19%

11%

11%

10%

1

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