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.
Exercises 1
Calculate the expected return on an asset that has the following probable returns:
Exercises 2
If you compare the asset in Exercise 1 to the following asset, can you quickly tell which one is riskier?
Exercises 6
Calculate the portfolio return of the following five-asset portfolio and how they are making up the portfolio capital.
