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.
![239_Table 4.jpg](https://secure.tutorsglobe.com/CMSImages/239_Table%204.jpg)
Exercises 1
Calculate the expected return on an asset that has the following probable returns:
![818_Table 5.jpg](https://secure.tutorsglobe.com/CMSImages/818_Table%205.jpg)
Exercises 2
If you compare the asset in Exercise 1 to the following asset, can you quickly tell which one is riskier?
![111_Table 6.jpg](https://secure.tutorsglobe.com/CMSImages/111_Table%206.jpg)
Exercises 6
Calculate the portfolio return of the following five-asset portfolio and how they are making up the portfolio capital.
![1124_Table 7.jpg](https://secure.tutorsglobe.com/CMSImages/1124_Table 7.jpg)