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Kiwi traders have invested in two securities traded at the Nairobi Stock Exchange (NSE). The security...

  1. Kiwi traders have invested in two securities traded at the Nairobi Stock Exchange (NSE). The security A Possible returns are estimated as 4%, 4.5%, 6%, 8%, 11%, 13%, 15%, 16%, 16.5% and 18%, with probabilities: 0.09, 0.07, 0.1, 0.2, 0.04, 0.03, 0.01, 0.02, 0.21 and 0. 23 respectively. Those of Security Y are estimated as 16%, 14%, 12%, 10%, 8%, 6%, 4%, 4%, 3%, and 2%, with probabilities: 0.08, 0.1, 0.07, 0.25, 0.09, 0.12, 0.03, 0.11, 0.1 and 0.05 respectively.

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If Kiwi trader’s portfolio formation is Ksh 300,000, committing equal amounts in each asset, determine the Portfolio risk

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jeff jeffy answered 2 years ago
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