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You are planning to make investment into three stocks, stock A, stock B and stock C. If the following information is given for them (KA:
You are planning to make investment into three stocks, stock A, stock B and stock C. If the following information is given for them (KA: Rate of return of stock A): Variance(KA)=120 Variance(KB)=286 Variance(KC)=125 Covariance(KA, KB)=-98 Covariance (KA, Kc)=260 Covariance (KC, KB)=118 If you form a portfolio investing 5% of your savings into stock A (WA=5%), 5% of your savings into stock B (WB=5%) and 90% of your savings into stock C (WC=90%), what will be the standard deviation of rate of return of your portfolio? (Answer is rounded) 18.45
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