State of economy Probability Estimated Return (Fund A) Estimated Return (Fund B) Great 30% 10% 25% Average 30% 15% 11% Poor 40% 20% 15% If you invest $2,000 in Fund A...

60.1K

Verified Solution

Question

Finance

State of economy
Probability
Estimated Return (Fund A)
Estimated Return (Fund B)
Great
30%
10%
25%
Average
30%
15%
11%
Poor
40%
20%
15%
If you invest $2,000 in Fund A and $8,000 in Fund B, Calculatethe following:
A.Portfolio’s Standard Deviation
B. Construct the complete covariance and correlation matrixesfor A&B
C. Find the minimum variance portfolio using solver and reportits variance, standard Deviation and expected return

Answer & Explanation Solved by verified expert

3.6 Ratings (384 Votes)

Expected Return Mean Return SUMof ProbabilityReturnVariance of Return Sum ofProbability Deviation 2Deviation Return Mean ReturnStandard Deviation of Return Square See Answer

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State of economy Probability Estimated Return (Fund A) Estimated Return (Fund B) Great 30% 10% 25% Average 30% 15% 11% Poor 40% 20% 15% If you invest $2,000 in Fund A...

60.1K

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Question

Finance

Answer & Explanation Solved by verified expert

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State of economy	Probability	Estimated Return (Fund A)	Estimated Return (Fund B)
Great	30%	10%	25%
Average	30%	15%	11%
Poor	40%	20%	15%