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