Question: please help and show step by step working a) You intend to construct a 2-asset portfolio. Three stock candidates are available with the following probability

 please help and show step by step working a) You intend

please help and show step by step working

a) You intend to construct a 2-asset portfolio. Three stock candidates are available with the following probability distribution of their returns: Probability Return on Stock X (%) 5 9 4 Return on Stock Y (%) 6 9 0 Return on Stock Z (%) 10 12 14 0.35 0.4 0.25 i) ii) iii) iv) How many 2-asset portfolio combinations can be created? Provide their names. Compute the covariance between the returns of various stock combinations Provide an estimate of correlation between returns of various stock combinations Which stocks emerges as the most ideal candidates to be held as a portfolio? Why

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