In: Finance
Create a portfolio using the three stocks and information below:
Expected Return |
Standard Deviation |
Weight in Portfolio |
|
Stock A |
35.00% |
28.00% |
39.00% |
Stock B |
34.00% |
25.00% |
25.00% |
Stock C |
26.00% |
21.00% |
36.00% |
---------------------- |
---------------------- |
---------------------- |
---------------------- |
Correlation (A,B) |
0.4300 |
---------------------- |
---------------------- |
Correlation (A,C) |
0.9700 |
---------------------- |
---------------------- |
Correlation (B,C) |
0.2600 |
---------------------- |
---------------------- |
all answered exept the last two question
(Do not round intermediate calculations. Record your answers in decimal form and round your answers to 4 decimal places. Ex. x.xxxx)
What is the variance of A? 0.0784
What is the variance of B? 0.0625
What is the variance of C? 0.0441
What is the Correlation (A,A)? 1
What is the Correlation (B,B)? 1
What is the Correlation (C,C)? 1
What is the Covariance (A,A)? 0.0784
What is the Covariance (A,B)? 0.0301
What is the Covariance (A,C)? 0.05703
What is the Covariance (B,A)? 0.0301
What is the Covariance (B,B)? 0.0625
What is the Covariance (B,C)? 0.01365
What is the Covariance (C,A)? 0.05703
What is the Covariance (C,B)? 0.01365
What is the Covariance (C,C)? 0.0441
What is the expected return on the portfolio above? 0.3151
What is the variance on the portfolio above?
What is the standard deviation on the portfolio above?