Gauging risk Worksheet\ Consider the following securities:\ \\\\table[[State,Probability,A,B,C],[

H

,0.2,6,10,6],[

M

,0.5,3,7,12],[

L

,0.3,2,5,14]]\ The expected payoff of

A

is:\ The standard deviation of

A

is:\ If the price of

A

is 3 , its expected return is:\ The covariance between

A

and

B

is:\ The correlation coefficient between

A

and

B

is:\ Is it possible to build a portfolio that has zero variance using

A

and

C

?

Gauging risk Worksheet Consider the following securities: 1. The expected payoff of A is: 2. The standard deviation of A is: 3. If the price of A is 3 , its expected return is: 4. The covariance between A and B is: 5. The correlation coefficient between A and B is: 6. Is it possible to build a portfolio that has zero variance using A and C