Question: You invest 30% in Ham and 70% in Cheese. Find the return and variance on the portfolio. You must calculate: expected return for both firms; standard deviation or variance (assume it is a population (n observations)) for both firms; correlation or co-variance between ham and cheese.
You invest 30% in Ham and 70% in Cheese.
|
Time
|
Ham
|
Cheese
|
|
1
|
-.04
|
.11
|
|
2
|
.15
|
.41
|
|
3
|
.21
|
-.13
|
|
4
|
.18
|
.39
|