In: Finance
Using the following 3 securities calculate:
1. Expected return
2. Variance
3. Standard deviation
4. Correlation between all possible pairs
5. Covariance between all possible pairs
Probability Stock A Stock B Stock C
.2 14% 29% 4%
.2 11% 21% 9%
.2 5.25% 25% 14%
.4 -3% 10% 20%
Using the following percentages, calculate the portfolio variance and expected return for each portfolio.
Portfolio Stock A Stock B Stock C
1 40% 60%
2 60% 40%
3 35% 30% 35%