Question: a b Expected return 0.1 0.08 SD 0.06 0.05 investment weight 0.3 0.7 covariance 0.0008 0.086 0.586436 0.765791094 =0.3*0.1+0.7*0.08 = 0.086 =(0.3^2)+(0.06^2)+(0.7^2)+(0.05^2)+2*0.3*0.7*0.0008= 0.5866436 =SQRT (0.5866436)

a

b

Expected return

0.1

0.08

SD

0.06

0.05

investment weight

0.3

0.7

covariance

0.0008

0.086

0.586436

0.765791094

=0.3*0.1+0.7*0.08 = 0.086

=(0.3^2)+(0.06^2)+(0.7^2)+(0.05^2)+2*0.3*0.7*0.0008= 0.5866436

=SQRT (0.5866436) = 0.76579109

************PLEASE CHECK MY WORK*******

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