You currently hold a portfolio of three stocks, Delta, Gamma, and Omega. Delta has a volatility of

Question:

You currently hold a of three stocks, Delta, Gamma, and Omega. Delta has a volatility of 60%, Gamma has a volatility of 30%, and Omega has a volatility of 20%. Suppose you invest 50% of your money in Delta, and 25% each in Gamma and Omega.
a. What is the highest possible volatility of your If your has the volatility in (a), what can you conclude about the correlation between Delta and Omega?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...