90.2K

Verified Solution

Link Copied!

Please show all formula and steps for fullcredit

------------------------------------------------------------------

Probability |   Rate of Return|                                     You have $10,000 and want to invest $2,000

                                                                                                      in Stock A, $7,000 in Stock B and $1,000 in                             |       A          |    B              |       C      |       Stock C.

------------------------------------------------------------------

P1= 0.5      | R1A=10% |  R1B=14% | R1C=7% |

P2=0.5      | R2A=15% |  R2B=22% | R2C=33%|

1. Calculate Expected Return of A,
2. Calculate Variance of A,
3. Calculate Standard Deviation of A,
4. Calculate Coefficient of Variation of A,
5. Calculate Expected Return of B,
6. Calculate Variance of B,
7. Calculate Standard Deviation of B,
8. Calculate Coefficient of Variation of B,
9. Calculate Expected Return of C,
10. Calculate Variance of C,
11. Calculate Standard Deviation of C,
12. Calculate Coefficient of Variation of C,
13. Calculate Covariance of A and B,
14. Calculate Correlation Coefficient of A and B,
15. Calculate Covariance of C and B,
16. Calculate Correlation Coefficient of C and B,
17. Calculate Covariance of A and C,
18. Calculate Correlation Coefficient of A and C,
19. Draw the Variance and Covariance Matrix,
20. Calculate Expected Return of the 3-Security Portfolio,
21. Calculate Variance of the 3-Security Portfolio,
22. Calculate Standard Deviation of the 3-Security Portfolio,
23. Calculate Coefficient of Variation of the 3-SecurityPortfolio.