A portfolio is composed of three assets X, Y and Z whose volatilities are equal to, respectively,

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A portfolio is composed of three assets X, Y and Z whose volatilities are equal to, respectively, 60%, 45% and 20%.

The weights of the stocks in the portfolio are as follows: 60% in X, 20% in Y and 20% in Z.

What is the maximum volatility of the portfolio?

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Numerical Methods For Engineers

ISBN: 9780071244299

5th Edition

Authors: Steven C. Chapra, Raymond P. Canale

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Posted Date: Mar 31, 2023 01:34 AM

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A portfolio is composed of three assets X, Y and Z whose volatilities are equal to, respectively,

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Expert Answer:

Solution The maximum volatility of the portfolio can be calculated using the following formul... View the full answer

Numerical Methods For Engineers

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