Question: (c) Consider Table 1. Calculate the expected return and standard deviation risk of a portfolio comprised of stock 1, stock 2, stock 3, and

(c) Consider Table 1. Calculate the expected return and standard deviation risk

(c) Consider Table 1. Calculate the expected return and standard deviation risk of a portfolio comprised of stock 1, stock 2, stock 3, and stock 4. Detail all calculations. Stock 1 Stock 2 Stock 3 Stock 4 Stock 1 Stock 2 Stock 3 Stock 4 Expected return (%) 7% 10% 9% 5% Stock 1 39.6 28.8 18.0 Table 1 Standard deviation (%) 9% 11% 8% 5% Covariance Matrix Stock 2 39.6 35.2 22.0 Stock 3 28.8 35.2 16.0 Weight (%) 0.3 0.2 0.4 0.1 Stock 4 18.0 22.0 16.0

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