Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Note: This is an optional problem. Solve this problem only if you would like to get extra points. Otherwise, you may skip this problem, Cathie

image text in transcribed
Note: This is an optional problem. Solve this problem only if you would like to get extra points. Otherwise, you may skip this problem, Cathie Wood, a fund manager at ARK, constructs a portfolio with three stocks: Apple, Amazon, and Tesla. She allocates 20% of total funds to Apple, 30% to Amazon, and the remaining 50% to Tesla. The following two tables summarize each stock's historical return and variance and covariances between stocks. Stocks Apple Amazon Tesla Weights 20% 30% Variance 0..03% Return 4.7% 8.3% 12.5% 0.04% 50% 0.07% Covariance (Apple, Amazon) 0.025% Covariance (Apple, Tesla) 0.013% Covariance (Tesla, Amazon) 0.067% 1. The portfolio return is %. (Note: round to the nearest tenth.) 2. The portfolio Standard deviation is %. (Note: round to the nearest tenth.) DI

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Single Stock Futures For Small Speculators

Authors: Noble Drakoln

1st Edition

0966624564, 978-0966624564

More Books

Students also viewed these Finance questions