Matthew has recently contacted you to assist him in estimating the risk and return characteristics of a portfolio he is considering to from in the coming weeks The following data is available for the securities he is considering to purchase NVDA NFLX TXN Expected return 14 23 7 Standard deviation 8 19 5 Beta 0 78 1 21 0 34 Matthew is planning to invest 60 of his capital in security TXN, with the remainder being invested in security NVDA Previous analysis has found the correlation of returns between these two securities is 0 62 If Matthew implements the portfolio as he originally intended, calculate the expected return and the standard deviation of the resulting portfolio Assuming portfolio returns are normally distributed, what is the probability of the returns being greater than 23 for the portfolio created in Part a) The S P500 Index (market portfolio) is currently valued $3,932 Assuming the market is expected to appreciate in value to $4,521 80 in one year, determine the expected rate of return on the market portfolio Assuming portfolio returns are normally distributed, what is the probability of incurring a return more than the market portfolio (as determined in Part c)) for the portfolio created in Part a) Assume a market return of 10 p a if you did not answer Part c)

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Matthew has recently contacted you to assist him in estimating the risk and return characteristics of a portfolio he is considering to from in the

Matthew has recently contacted you to assist him in estimating the risk and return characteristics of a portfolio he is considering to from in the coming weeks. The following data is available for the securities he is considering to purchase:

	NVDA	NFLX	TXN
Expected return	14%	23%	7%
Standard deviation	8%	19%	5%
Beta	0.78	1.21	0.34

Matthew is planning to invest 60% of his capital in security TXN, with the remainder being invested in security NVDA. Previous analysis has found the correlation of returns between these two securities is 0.62.

If Matthew implements the portfolio as he originally intended, calculate the expected return and the standard deviation of the resulting portfolio.
Assuming portfolio returns are normally distributed, what is the probability of the returns being greater than 23% for the portfolio created in Part a)
The S&P500 Index (market portfolio) is currently valued $3,932. Assuming the market is expected to appreciate in value to $4,521.80 in one year, determine the expected rate of return on the market portfolio.
Assuming portfolio returns are normally distributed, what is the probability of incurring a return more than the market portfolio (as determined in Part c)) for the portfolio created in Part a)? Assume a market return of 10% p.a. if you did not answer Part c)