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AVERAGES

	sp500	A	B
Average	-0.0069	0.0018	0.0015

covariance matrix:

	Sp500	A	B
Sp500	0.00336
A	0.00322	0.0041
B	0.0044	0.00514	0.00824

1. For a portfolio formed by 40% in the SP500 and 60% in A. Calculate the return on the portfolio.

2. Using the covariance matrix from question 7, calculate the variance of the portfolio formed by 40% in the SP500 and 60% in A.

3. Using the variance from question 8, calculate the standard deviation of the portfolio formed by 40% in the SP500 and 60% in A.

4. Using the averages from question 7, calculate the average of a portfolio formed by 30% in A and 70% in B.

5. Using the covariance matrix from question 7, calculate the variance of a portfolio formed by 30% in A and 70% in B.

6. Using the variance from question 12, calculate the standard deviation for the portfolio formed by 30% in A and 70% in B.