PLEASE ANSWER ALL QUESTIONS!!!!!!!!

NOTE: For SHARP RATIO, assume the risk free rate to be 0

PLEASE ROUND TO 2 DECIMALS! THANK YOU

AVERAGES

	sp500	A	B
Average	-0.0069	0.0018	0.0015

covariance matrix:

	Sp500	A	B
Sp500	0.00336
A	0.00322	0.0041
B	0.0044	0.00514	0.00824

For a portfolio formed by 40% in the SP500 and 60% in A. Calculate the return on the portfolio.

8.) Using the covariance matrix from question 7, calculate the variance of the portfolio formed by 40% in the SP500 and 60% in A.

9.) Using the variance from question 8, calculate the standard deviation of the portfolio formed by 40% in the SP500 and 60% in A.

10.) Using the average and standard deviation from previous questions, calculate the Sharpe ratio for the portfolio formed by 40% in the SP500 and 60% in A.

11.) Using the averages from question 7, calculate the average of a portfolio formed by 30% in A and 70% in B.

12.) Using the covariance matrix from question 7, calculate the variance of a portfolio formed by 30% in A and 70% in B.

13.) Using the variance from question 12, calculate the standard deviation for the portfolio formed by 30% in A and 70% in B.

14.) Using the average and standard deviation from previous questions, calculate the Sharpe ratio for the portfolio formed by 30% in A and 70% in B.

15.) Which of the portfolios offer greater return per unit of risk taken?

A. The portfolio formed by 30% in A and 70% in B

B. portfolio formed by 40% in the SP500 and 60% in A

c. Both give the same return per unit of risk