(13) There are three stocks, X, Y, and Z. Your portfolio has 30% of its wealth...
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(13) There are three stocks, X, Y, and Z. Your portfolio has 30% of its wealth in X, 20% in Y, and 50% in Z. What is the variance of this portfolio, given the following covariance of each stock with each other stock? (This question is taken from the 2018 IFM Investment and Financial Markets sample questions.) X Y Z 0.016 X 0.040 -0.018 Y-0.018 0.090 -0.021 Z 0.016 -0.021 0.010 (13) There are three stocks, X, Y, and Z. Your portfolio has 30% of its wealth in X, 20% in Y, and 50% in Z. What is the variance of this portfolio, given the following covariance of each stock with each other stock? (This question is taken from the 2018 IFM Investment and Financial Markets sample questions.) X Y Z 0.016 X 0.040 -0.018 Y-0.018 0.090 -0.021 Z 0.016 -0.021 0.010
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To calculate the variance of the portfolio we need to consider the weights of each stock in the port... View the full answer
Related Book For
Fundamentals of Investments
ISBN: 978-0132926171
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
Posted Date:
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