# Part 3 (ch11) Questions Numeric

**Type your answers with “.” instead of “,”! For numerical answers, use 2 decimal places. For instance, if your answer is 0.12345 or 12.345%, type, “12.34” in the box.**

## Question 1

**Q:** What is the **expected return** of a portfolio that invests 0.326 percent in Asset 1 (expected return = 0.145) and the remaining 0.674 in Asset 2 (expected return = 0.044)?

**Q:** Assuming that the correlation between these assets is 0.546, and that the standard deviation of Asset 1 is 0.255 while the standard deviation of Asset 2 is 0.126, what is the **variance** of the portfolio above?

**Q:** Assuming that the correlation between these assets is 0.546, and that the standard deviation of Asset 1 is 0.255 while the standard deviation of Asset 2 is 0.126, what is the **standard deviation** of the portfolio above?

**Answer**

7.702

2.181

14.767