Question

Portfolio 1- calculate the expected return, variance and standard deviation of asset A 4.8%, Asset B 0.75%, Asset C 17.5 and 20.2 and risk free asset F.

Note: there is also a risk free asset F whos expected return is 9.9%

I WA TISK and fetui11 man those that are provided in the article. The table below gives information on three risky assets: A, B, and C. Correlations Asset Expected return Standard Deviation of the Return B C 0.4 0.15 11.5 23 0.25 B 14 43 0.25 1 " CI 18 58 0.4 0.15 There is also a risk-free asset F whose expected return is 9.9 percent.

Answer 1

Given:- Solution :- standard correlation co) Expected return Asset derivation 025 0.4 ی 0:15 که .: مه 0.15 58 Herre- © Expecled betworn of portfolio ENAXEA TW BXE = 0.4X0-115 +0.670.14 -13). Standard derivakon of portfolio ? e come to ou + ac ub) (wa) (cca,8) () (6) Jou (0.23] +0.0*С0:43)+ 2(0-4) (0-6)(0-28) (0-23) (0-43) 29.4.1

Expected return of portfolio - HAYEAT Avar kg *Е I WA = 0.6 A 20:28 wp-0.225 -0.43 We = 0.175 6c 20:58 -0.6X0.115 to 2a5 X0.14 0.14570.18 -13.2 standard deviation of portfolio a: for a cha) tu? Get us? Ca®)+ a[n) (uk) (€CA1B) (G)CG)] +2 [704) (6) (+(910)] CG)(€)] +2[@) ()(80] (45)()}" -[0.60.28) 40 aasco. 43") + 0.175(0.58%); a(06)(0-aas)(0-as) (0 23) (0:43]]+2600)(0-175) (04)(0-a3)00:58)] +2 [co-aas) (0-145) (0.15) (0.43) (0987]]' = [0-93970-0867400V 0.00247"? - (0.0592 .24.4. ☺ Expected ze tworn of portfolio = W X EA + W X Ep + We tec 0.18 < 0.33 X0-115 10:33X0-14 +0.33 - 14.37.

standard derivation of portfolion in mun ~ wa 6² w(6) tuh C +2LCWA) (WB) (C(A,B)) (GA) (6)tawa- (w) CCCAC) CSA) (G)]+a [cupe (02) COCAIC)] ( = [0.33%(0.23)+ 0.33(0.43%) +0:33(0.583 + 2(0-33) (0.33) (0.45)Ak) (0-49) + 2 (0.33) (0-u) (0-a3) (0.58) +a[633) (0-33) (0-1) (043) (0.90072 3 0.062 + 0.00547 0.011 +0.00817 +60-036572 29.4.1.