The correlation coefficients for each pair are shown in the following matrix, with each cell in the matrix giving the correlation between the stock in that row and column . For example. pAB =0.1589 in the row for A and the column for B. Notice that the diagonal values are equal to 1 because a variable is always perfectly correlated with

Start with the partial model in the file Cho3 P07 Build a Model.xisox. Following is information for the required returns and standard deviations of returnis for A, B, and C: The correlation coefficients for each poir are shown in the following matrix, with each cell in the matrix giving the correlation between the stock in that row and column. For example, DAB=0.1589 is in the row for A and the column for B. Notice that the diagonal values are equal to 1 because a vanable walways perfectly correlated with itself. The data has been collected in the Microsaft Excel file tielow. Download the speedsheet and perform the required analyss to answer the questions below. Do not round intermedinte calculations. Round your answers to two decimal places. Downksit soreodsheet Cho3. Pay Bvild a Model. 91791 d who a. Suppose a portiolio has 10% invested in A,30% in B, and 60% in C What are the expected return and standarid deviation of the portfolia? Expected return: Standard deviation: b. The partial model lists sixty six different combinations of portfolio weights (only sax of them are shown below). For each combination of weights, find the required return and standard deviation. c. Construct a scatter diapram showing the required retums and standard deviations already calculated, This provides a visual indeator of the feasible set. Choose the correct graph. The correct graph is +1 If you seck a return of 11.2%, then what is the smallest standard devation that you mist accept