You are given the following information about 4 stocks:Variance-Covariance Matrix1Stock30.0125 0.0244 0.45250.0125 0.0759 0.0252 0.01550.0244 0.0252 0.0987 0.08320.4525 0.0155 0.0832 0.0288410.0325234What is the variance of the equally weighted portfolio consisting of these stocks? Round yourfinal answer to four decimal places.

Weight in stock 1 (w1) = 0.25 Weight in stock 2 (w2) = 0.25 Weight in stock 3 (w3) = 0.25 Weight in…

You are given the following information about 4 stocks: Variance-Covariance Matrix 3 0.0325 0.0125 0.0244 0.4525 0.0125 0.0759 0.0252 0.0155 0.0244 0.0252 0.0987 0.0832 0.4525 0.0155 0.0832 0.0288 Stock 1 4 1 3 4 What is the variance of the equally weighted portfolio consisting of these stocks? Round your final answer to four decimal places.

You are given the following information about 4 stocks: Variance-Covariance Matrix 3 0.0325 0.0125 0.0244 0.4525 0.0125 0.0759 0.0252 0.0155 0.0244 0.0252 0.0987 0.0832 0.4525 0.0155 0.0832 0.0288 Stock 1 4 1 3 4 What is the variance of the equally weighted portfolio consisting of these stocks? Round your final answer to four decimal places.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 1 Under which of the following scenarios, the minimum variance portfolio that contains two stocks has the smallest standard deviation? OA. The correlation between the two stock returns is -1 OB. The correlation between the two stock returns is -0.2 OC. The correlation between the two stock returns is 0.2 OD. The correlation between the two stock returns is 0.5
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