Create a portfolio using the three stocks and information below: Expected Return Standard Deviation Weight in Portfolio Stock A 6.00% 18.00% 31.00% Stock B 6.00% 29.00% 19.00% Stock...

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Finance

Create a portfolio using the three stocks and informationbelow:

Expected ReturnStandard DeviationWeight in Portfolio
Stock A6.00%18.00%31.00%
Stock B6.00%29.00%19.00%
Stock C22.00%22.00%50.00%
----------------------------------------------------------------------------------------
Correlation (A,B)0.2700--------------------------------------------
Correlation (A,C)0.3700--------------------------------------------
Correlation (B,C)0.2600--------------------------------------------

(Do not round intermediate calculations. Record youranswers in decimal form and round your answers to 4 decimal places.Ex. x.xxxx)

What is the variance of A?

What is the variance of B?

What is the variance of C?

What is the Correlation (A,A)?

What is the Correlation (B,B)?

What is the Correlation (C,C)?

What is the Covariance (A,A)?

What is the Covariance (A,B)?

What is the Covariance (A,C)?

What is the Covariance (B,A)?

What is the Covariance (B,B)?

What is the Covariance (B,C)?

What is the Covariance (C,A)?

What is the Covariance (C,B)?

What is the Covariance (C,C)?

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
4.4 Ratings (771 Votes)
GivenExpected ReturnStandard DeviationWeight in PortfolioVarianceStock A60018003100324Stock B60029001900841Stock C220022005000484Correlation AB027Correlation    See Answer
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Create a portfolio using the three stocks and informationbelow:Expected ReturnStandard DeviationWeight in PortfolioStock A6.00%18.00%31.00%Stock B6.00%29.00%19.00%Stock C22.00%22.00%50.00%----------------------------------------------------------------------------------------Correlation (A,B)0.2700--------------------------------------------Correlation (A,C)0.3700--------------------------------------------Correlation (B,C)0.2600--------------------------------------------(Do not round intermediate calculations. Record youranswers in decimal form and round your answers to 4 decimal places.Ex. x.xxxx)What is the variance of A?What is the variance of B?What is the variance of C?What is the Correlation (A,A)?What is the Correlation (B,B)?What is the Correlation (C,C)?What is the Covariance (A,A)?What is the Covariance (A,B)?What is the Covariance (A,C)?What is the Covariance (B,A)?What is the Covariance (B,B)?What is the Covariance (B,C)?What is the Covariance (C,A)?What is the Covariance (C,B)?What is the Covariance (C,C)?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?

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