Question: Please solve the below mentioned question and provide answers along with proper workings and explanations (pls do not use excel format or excel formulas to
Please solve the below mentioned question and provide answers along with proper workings and explanations
(pls do not use excel format or excel formulas to answers the below questions)
Q1)You are given the following information:
| Correlation Matrix | |||||
| ALLEGIANT Ltd | BLUESKY Ltd | CLOUDFLARE Ltd | Standard Deviation | Expected Return | |
| ALLEGIANT Ltd | 1.00 | 0.31 | 0.60 | 20.18% | 18% |
| BLUESKY Ltd | 1.00 | 0.14 | 17.54% | 12% | |
| CLOUDFLARE Ltd | 1.00 | 28.47% | 16% | ||
a)Calculate the standard deviation and the expected return of a portfolio that consists of 15 percent ALLEGIANT Ltd., 35 percent BLUESKY Ltd. and 50 percent CLOUDFLARE.Ltd., and beta of the portfolio given that: the standard deviation of the market is 21 percent and the correlation coefficient between the market and the companies are: ALLEGIANT Ltd.: 0.50 BLUESKY Ltd: -0.35 & CLOUDFLARE Ltd.: 0.15
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
