ABC Ltd intends to invest Ksh 2,400,000 in a portfolio comprising FOUR securities. The following information relates to

[answerhappygod]

ABC Ltd intends to invest Ksh2,400,000 in a portfolio comprising FOUR securities. The followinginformation relates to the securities under consideration:
Security Return (%) standard deviation (%) weight
A 12 3.2 0.25
B 16 1.4 0.33
C 14 2.6 0.27
D 10 1.7 0.15
The covariance between each ofthe possible security combinations in the portfolio is givenbelow
Portfolio Covariance
A,B 2.4
A,C -1.2
A,D 3.9
B,C -1.5
B,D 2.0
C,D 1.6
Assume that the securities are notdivisible and each portfolio comprises two differentsecurities.
Required
i) Calculate the standarddeviation and coefficient of variation of each possibleportfolio.
(16 Marks)
ii) Advice the company on whichportfolio to invest its funds based on your resultsin (i) above. (4Marks)