For question 1 and 2 consider the following data: You own three stocks: 370 s...
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For question 1 and 2 consider the following data:
You own three stocks: 370 shares of stock A, 264 shares of stock B, and 454 shares of stock C. The current share prices and expected returns of A, B, and C are, respectively, €42,5, €39,4, €42,9 and 12%, 9,40%, 10.5%.
Below you have the covariance matrix for the tree stocks:
Covariance Matrix | A | B | C |
A | 0,018 | 0 | - 0.0005 |
B | - | 0,075 | 0.002 |
C | - | - | 0,044 |
Compute the portfolio’s expected return.
(Report your answer as a percentage. For example, if the correct answer is 5.65% report 5.65)Want instant access to all verified answers on moodle.lisboa.ucp.pt?
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