Calculate the standard deviation and variance and covariance

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Reference no: EM131307078

Let's combine the last three assets in Exercises 1, 2, and 6 into a portfolio using the probabilities of the first asset. Calculate the standard deviation, variance, covariance, and correlation between assets I and II and explain the risk involved in this portfolio regarding these two assets.

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Exercises 1
Calculate the expected return on an asset that has the following probable returns:

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Exercises 2
If you compare the asset in Exercise 1 to the following asset, can you quickly tell which one is riskier?

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Exercises 6
Calculate the portfolio return of the following five-asset portfolio and how they are making up the portfolio capital.

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Reference no: EM131307078

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