You have a portfolio which consists of 75% of stock 1 (σ^2 = 0.16) and 25% of stock 2 (σ^2 = 0.09). Covariances : σ1,2 =

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answerhappygod
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You have a portfolio which consists of 75% of stock 1 (σ^2 = 0.16) and 25% of stock 2 (σ^2 = 0.09). Covariances : σ1,2 =

Post by answerhappygod »

You have a portfolio which consists of 75% of stock 1 (σ^2 =
0.16) and 25% of stock 2 (σ^2 = 0.09). Covariances : σ1,2
= 0.02 , σ1,m =
0.064 , σ2,m = 0.032 and σ
m^2 = 0.04 (market variance). Find the variance of the
portfolio
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