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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.