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Over a 7 - year period, an equally weighted portfolio is formed on four stocks with information given as follows: - a . Form the
Over a year period, an equally weighted portfolio is formed on four stocks with information
given as follows:
a Form the variancecovariance matrix of the stocks.
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b Compute the annual average return and risk of the portfolio using the markowitz's
methodology.
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c Compute and for each stocks and for portfolio.
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d Compute risk portfolio using Sharp's methodology.
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e If the number of stocks is increasing to stocks in the portfolio how many inputs
necessary in each methodology?
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