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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)=360
Variance(KB)=286
Variance(KC)=120
Covariance(KA, KB)= - 98
Covariance (KA, Kc)=260
Covariance (KC, KB)= - 118
If you form a portfolio investing 30% of your savings into stock A (WA=30%), 35% of your savings into stock B (WB=35%) and 35% of your savings into stock C (WC=35%), what will be the standard deviation of rate of return of your portfolio? (Answer is rounded)
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