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

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!