Essay
A portfolio is made up of 75% of share 1, and 25% of share 2.Share 1 has a variance of .08, and share 2 has a variance of .035.The covariance between the shares is -.001.Calculate both the variance and the standard deviation of the portfolio.
Correct Answer:

Verified
σ2 = (.75)2(.08) + (...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q3: The total number of variance and covariance
Q4: GenLabs has been a hot share the
Q7: You are considering purchasing share S.This share
Q9: The _ tells us that the expected
Q10: The linear relation between an asset's expected
Q12: Beta measures:<br>A)the ability to diversify risk.<br>B)how an
Q13: A portfolio has 50% of its funds
Q23: The characteristic line is graphically depicted as:<br>A)the
Q79: Explain in words what beta is and
Q124: The elements in the off-diagonal positions of