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Questions 2 and 3 are related 2. 1. assume that you have two stocks with weights 0.4 and 0.6. assume that the covriance is of

Questions 2 and 3 are related

2. 1. assume that you have two stocks with weights 0.4 and 0.6. assume that the covriance is of the form aij = 1] 2. Calculate the standard deviation of the portfolio 3. Calculate the risk decomposition of the portfolio as we did in class 4. What is the VAR of 99% level of the portfolio

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