Answer Happy

1 1 2 2 Suppose you invest 60% of your portfolio in Southwest Airlines and the remainder in Amazon. The expected dollar Southwest Amazon Portfolio Aidines 10% 15% 13.0% 6.10% 26.60% 0.0708 27.90% 0.0778 0.00372 3 Expected 4 Retum Standard 5 Deviation 6 Variance 7 Corelation Weights in the 8 portfolio 9 10 11 12 -1 40% 60% Variance - Covariance Matrix 13 Weights in the portfolio 40% 60% Amazon Southwest 0.070756 -0.074214 -0.074214 0.077841 14 Amazon 15 Southwest 16 17 18 Please calculate the portfolio risk of the following 3 stock portfolio with the given data 19 20 21 22 ABC BIG Corp New Port Portfolio 15% 21% 19.0% 42.00% 28.00% 0.0784 30.00% 0.09000 0.1764 0.4 Expected 23 Retum Standard 24 Deviation 25 Variance Correlation ABC 26 and BIG Corp Correlation ABC 27 and New Port Correlation BIG Corp and New 28 Port Weights in the 29 portfolio 30 0.5 0.46 30% 20% 50% 31 32 Variance - Covariance Matrix 33 34 ABC BIG Corp New Port Weights in the portfolio 30% 35 ABC 36 BIG Corp 37 New Port 20% 50% 38 39 40