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Please share answers for Ques 2, Consider the table below: Security A B C D 2 3 1 4 1.5 1.3 0.8 0.9 ei 3
Please share answers for Ques 2,
- Consider the table below:
| Security | |||
| A | B | C | D |
2 | 3 | 1 | 4 | |
1.5 | 1.3 | 0.8 | 0.9 | |
ei | 3 | 1 | 2 | 4 |
If rm = 8 and m = 5, calculate the following:
-
- The mean return for each security.
-
- The variance of each security's return.
-
- The covariance of returns between each security.
- Using the data from Problem 1 and assuming an equally-weighted portfolio, calculate the following:
- pp
- p2
- rp
Please share the formula for portfolio variance of more than two assets.
Thank you
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