Create a portfolio using the four stocks and information below: Expected Return Standard Deviation Weight in Portfolio Stock...

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Finance

Create a portfolio using the four stocks and informationbelow:
Expected Return Standard Deviation Weight in Portfolio
Stock A 18.00% 19.00% 29.00%
Stock B 8.00% 16.00% 28.00%
Stock C 6.00% 31.00% 26.00%
Stock D 8.00% 16.00% 17.00%
Correlation (A,B) 0.5000
Correlation (A,C) 0.5200
Correlation (A,D) 0.8700
Correlation (B,C) 0.4700
Correlation (B,D) 0.2900
Correlation (C,D) 0.1200
(Do not round intermediate calculations. Record your answers indecimal form and round your answers to 4 decimal places. Ex.x.xxxx)
What is the Correlation (A,A)?
What is the Correlation (B,B)?
What is the Correlation (C,C)?
What is the Correlation (D,D)?
What is the Covariance (A,A)?
What is the Covariance (A,B)?
What is the Covariance (A,C)?
What is the Covariance (A,D)?
What is the Covariance (B,A)?
What is the Covariance (B,B)?
What is the Covariance (B,C)?
What is the Covariance (B,D)?
What is the Covariance (C,A)?
What is the Covariance (C,B)?
What is the Covariance (C,C)?
What is the Covariance (C,D)?
What is the Covariance (D,A)?
What is the Covariance (D,B)?
What is the Covariance (D,C)?
What is the Covariance (D,D)?
What is the expected return on the portfolio above?
What is the variance on the portfolio above?
What is the standard deviation on the portfolio above?

Answer & Explanation Solved by verified expert

3.7 Ratings (633 Votes)

1 Variance of A Standard Deviation 2 192 361 Variance of B Standard Deviation 2 162 256 Variance of C Standard Deviation 2 312 961 Variance of D Standard Deviation 2 162 256 Correlation AA Covariance AA SDA SDA Variance of A SDA SDA 3611919 1 2 Correlation BB Covariance BB SDB SDB Variance of B SDB SDB 2561616 1 3 Correlation CC Covariance CC SDC SDC Variance of C SDC SDC See Answer

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Create a portfolio using the four stocks and informationbelow:Expected Return Standard Deviation Weight in PortfolioStock A 18.00% 19.00% 29.00%Stock B 8.00% 16.00% 28.00%Stock C 6.00% 31.00% 26.00%Stock D 8.00% 16.00% 17.00%Correlation (A,B) 0.5000Correlation (A,C) 0.5200Correlation (A,D) 0.8700Correlation (B,C) 0.4700Correlation (B,D) 0.2900Correlation (C,D) 0.1200(Do not round intermediate calculations. Record your answers indecimal form and round your answers to 4 decimal places. Ex.x.xxxx)What is the Correlation (A,A)?What is the Correlation (B,B)?What is the Correlation (C,C)?What is the Correlation (D,D)?What is the Covariance (A,A)?What is the Covariance (A,B)?What is the Covariance (A,C)?What is the Covariance (A,D)?What is the Covariance (B,A)?What is the Covariance (B,B)?What is the Covariance (B,C)?What is the Covariance (B,D)?What is the Covariance (C,A)?What is the Covariance (C,B)?What is the Covariance (C,C)?What is the Covariance (C,D)?What is the Covariance (D,A)?What is the Covariance (D,B)?What is the Covariance (D,C)?What is the Covariance (D,D)?What is the expected return on the portfolio above?What is the variance on the portfolio above?What is the standard deviation on the portfolio above?