Please help me figure this out using excel! Suppose stocks D, E and F monthly...
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Please help me figure this out using excel!
Suppose stocks D, E and F monthly returns have the following mean and variances:
Stock D: Mean () of 1.1%, and Variance ( 2 ) of 0.0064 - i.e. monthly volatility of 8%
Stock E: Mean () of 0.5%, and Variance ( 2 ) of 0.0025 - i.e. monthly volatility of 5%
Stock F: Mean () of 0.7%, and Variance ( 2 ) of 0.0036 - i.e. monthly volatility of 6%
o Stocks D and E have pairwise covariance of 0.0017
o Stocks D and F have pairwise covariance of 0.0028
o Stocks E and F have pairwise covariance of 0.0013
9) What is the expected return and standard deviation for a portfolio that involves 40% investment in stock D, 30% in Stock E, and the rest in Stock F?
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