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The statistics for the returns on the various components of a retirement portfolio are: Asset Allocation (w) Expected Return (E(r)) Standard Deviation () Correlation() Cash
The statistics for the returns on the various components of a retirement portfolio are:
Asset | Allocation (w) | Expected Return (E(r)) | Standard Deviation () | Correlation() | ||
Cash | Bonds | Stock | ||||
Cash | 10% | 3.69% | 2% | 1.00 | 0.64 | -0.44 |
Bonds | 10% | 3.26% | 3% |
| 1.00 | 0.39 |
Stocks | 80% | 7.2% | 21% |
|
| 1.00 |
Calculate the portfolio variance.
Enter the answer as a decimal (with 4 decimal places). For example 0.0233311 = 0.0233.
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