RETURN STATISTICS FOR THREE STOCKS 2 ABC 3 Average return 22.00% QPD 17.50% 4 Variance 0.2 5 Standard deviation 44.72% 0.05 22.36% XYZ 30.00% 0.17 41.23% 6 7 Correlations 8 Corr(ABC,QPD) 0.05 9 Corr(ABC,XYZ) -0.1 10 Corr(QPD,XYZ) 0.5 11 12 Cov(ABC,QPD) 0.0050 13 Cov(ABC,XYZ) -0.0034 14 Cov(QPD,XYZ) 0.0461 15 16 Section a. 17 Portfolio compositions 18 ABC 19 QPD 20 XYZ 21 22 Portfolio statistics 23 Expected return 24 Variance 25 Standard deviation 26 27 Section b. 28 Minimum variance portfolio 29 ABC 30 QPD 31 XYZ 32 34 33 Portfolio statistics Expected return 35 Variance 36 Standard deviation 37 50% 20% 30% 38 Section c. 39 Portfolio with standard deviation of 30% 40 ABC 41 QPD 42 XYZ 43 44 Portfolio statistics 45 Expected return 46 Variance 47 Standard deviation (check) 48 49 +