Essay On Volatility Of The Portfolio

Essay About Volatility        Weight Large-Cap Stocks And Weight Stockse
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Investment Homework Part 1:Question 1)a)                                E(R)        Volatility        Weight Large-Cap Stocks                15%        15%                75%Government Bonds                5%        10%                25%Correlation: 0.5To calculate Expected return, we took the sum of all of the weights multiplied by their respective expected returns.  (.15*.75)+(.05*.25) = 12.5%To calculate the volatility of the portfolio, we used the formula as prescribed in the lecture.  Each weight squared multiplied by their variance, plus 2 times each.

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