Essay About Return Of Each Assets And Standart Deviations Of Each Assets

Modern Portfolio Theory and Investment Analysis – Chapter 4 Problem 1
Chapter 4 Problem 1Expected return of each assets: [pic 1]Standart deviations of each assets: [pic 2][pic 3]Covariance of return for Asset 1 and 2[pic 4]Covariance values for all possible pairsParticularsAsset 1Asset 2Asset3Asset 4Asset 18-4120Asset 2-42-60Asset 312-6180Asset 400010.7Correlation between asset 1 and 2 is :[pic 5] [pic 6]  [pic 7]Correlation values for all possible pairs: ParticularsAsset 1Asset 2Asset3Asset 4Asset 11-110Asset 2-11-10Asset 31-110Asset 40001The expected return for portfolio A:[pic 8]Expected Return For All Assets:PortfolioExpected Return %A9B13C12D10E13F10.67G10.67H12.67I11Variance of Portfolio A[pic 9]PortfolioVarianceStandart DeviatonA0.50.707B12.53.536C4.62.145D21.414E72.646F3.61.897G21.414H6.72.588I2.71.643Each of the four assets in expected return and standart deviation space[pic 10]Chapter 4 Problem 3The average variance of return for an individual security is 50 , The average covariance is 10Objective is to compute the expected variance of an equally weighted portfolio of 5 , 10 ,20, 50, and 100 securities.