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JUST SECOND QUESTION Suppose that you are about to construct a portfolio of three risky assets, Stock A, Stock B, and Stock C. You have

JUST SECOND QUESTION

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Suppose that you are about to construct a portfolio of three risky assets, Stock A, Stock B, and Stock C. You have 100.000 TL of capital to invest. Relevant data regarding these stocks are presented as follows: Stock A Expected return Variance Investment amount 20% 3.24% 30.000 TL 25% 1,44% 40.000 TL 30% 0.25% 30.000 TL Correlation Matrix A B 100% 65% 100% 55% 75% 100% A B INSTRUCTIONS Q1: Find the portfolio expected return. (10 points) Q2: Find the portfolio risk (standard deviation) by means of MATRIX ALGEBRA! (15 points)

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