So given the example above what would the Apple, Bunnies, and Cats look like?

Q4) Assume the following variance covariance matrix for three stocks, A, B and C: Stock A Stock B Stock C Stock A 0.04 0.00045 0.0008 Stock B 0.00045 0.0225 -0.0018 Stock C 0.0008 -0.0018 0.01 a) What is the correlation coefficient between stocks A and C? b) What is the correlation coefficient between stocks B and C? Assume that you want to invest 40% in stock A and 60% in stock C. c) What is the standard deviation of the portfolio? Assume that you want to invest in all the stocks equally. d) What is the standard deviation of the portfolio? A4) a) A14) p A,C = 0.0008 / (10.04 * 10.01) = 0.04 b) PB.C =-0.0018 / (10.0225 * 10.01) = -0.12 c) oA,C = 0.42 * 0.04 +0.62 * 0.01 + 2 * 0.4 * 0.6 * 0.0008 = 0.010384 04.C = V0.010384 = 0.1019019 = 10.19019% d) oA,B,C = (1/3)2 * 0.04 + (1/3)2 * 0.0225 + (1/3)2 * 0.01 + 2 * (1/3)2 * 0.00045 + 2 * (1/3)2 * -0.0018 + 2 * (1/3)2 * 0.0008 = 0.0079333 A,B,C= V0.0079333 = 0.089069 = 8.9069% Apple Bunnies Apple cats 20009 .07 0 0 0 Bunnies .00055 | .0202 0202 -0.0181 Cats ..0009 -0.0181 -01