Rio Tinto has a weight of 6.25% portfolios, standard deviation 10.8% and return 20%. Centrica has a weight of 6.25% portfolios , standard deviation is 10.8% and return is 12.4%. The covariance of the two is 1.5%. Cal;culate based on varian mean analysis approach the return and the variance or the risk.

Rio Tinto has a weight of 6.25% portfolios, standard deviation 10.8% and return 20%. Centrica has a weight of 6.25% portfolios , standard deviation is 10.8% and return is 12.4%. The covariance of the two is 1.5%. Cal;culate based on varian mean analysis approach the return and the variance or the risk.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter6: Risk And Return

Section: Chapter Questions

Problem 7MC: Explain correlation to your client. Calculate the estimated correlation between Blandy and...

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