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Mary, a finance student at Amity student, holds a portfolio which consists three stocks (one each) of: stock A, stock B, and stock C. Please

Mary, a finance student at Amity student, holds a portfolio which consists three stocks (one each) of: stock A, stock B, and stock C. Please note the following information about these stocks:

Stock A

Stock B

Stock C

Price

$120

$84

$96

Return

20%

15%

10%

Standard deviation

0.35

0.1

0.5

Correlation between A and B

0.3

Correlation between B and C

0.2

Correlation between A and C

0.4

Questions:

a- Please calculate the portfolio’s expected return

b- Please calculate the portfolio’s variance and standard deviation

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