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Expected compound return on portfolio

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Consider that you have $3,787,102 to invest across three assets using the price weighted methodology and that your analysis of these assets provides the information in the two tables below. To 2 decimal places answer the following questions. (Note: numbers in red are negative)

Asset

A

B

C

Price at beginning of the year (in $)

16.01

39.98

12.77

Expected price at the end of the year (in $)

17.22

44.12

24.12

Standard deviation (%)

31.45

42.55

28.94

Correlation

A

B

C

A

1.00

0.52

-0.22

B

0.52

1.00

0.65

C

-0.22

0.65

1.00

Required 

  1. What is the expected compound return on this portfolio, in percentage terms?
  2. What is the expected continuously compounded return on this portfolio in percentage terms?
  3. In dollars and cents, what is the expected value of this portfolio after 12 months?
  4. What is the standard deviation of this portfolio, in percentage terms?

Reference no: EM133122466

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