5. Calculate the portfolio variance and standard deviation for a portfolio having the following characteristics. Securities I K L Correlation coefficients: J and K = 0.8 J and L= 0.2 K and L = 0.5 Return (per cent) 40 15 50 Standard deviation 12 8 16 Proportion of investment 0.2 0.3 0.5

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 13PPS
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were 25, 25 and 50 per cent respectively?
5. Calculate the portfolio variance and standard deviation for a portfolio having the
following characteristics.
Securities
I
K
L
Correlation coefficients:
J and K = 0.8
J and L= 0.2
K and L= 0.5
Return
(per cent)
40
15
50
Standard
deviation
12
8
16
Proportion of
investment
0.2
0.3
0.5
Transcribed Image Text:were 25, 25 and 50 per cent respectively? 5. Calculate the portfolio variance and standard deviation for a portfolio having the following characteristics. Securities I K L Correlation coefficients: J and K = 0.8 J and L= 0.2 K and L= 0.5 Return (per cent) 40 15 50 Standard deviation 12 8 16 Proportion of investment 0.2 0.3 0.5
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