Reading 66: Portfolio Concepts Los d(part1)~Q1-3 equals, assets, average, stocks

youzizhang

 

LOS d, (Part 1): Calculate the variance of an equally-weighted portfolio of n stocks.

Q1. Consider an equally-weighted portfolio comprised of seven assets in which the average asset variance equals 0.31 and the average covariance equals 0.27. What is the variance of the portfolio?

A)   27.5%.

B)   24.16%.

C)   27.00%.

 

Q2. Consider an equally-weighted portfolio comprised of five assets in which the average asset standard deviation equals 0.57 and the average correlation between all asset pairs is ?0.21. The variance of the portfolio is closest to:

A)   1.82%.

B)   1.00%.

C)   10.00%.

 

Q3. Consider an equally-weighted portfolio comprised of 17 assets in which the average asset standard deviation equals 0.69 and the average covariance equals 0.36. What is the variance of the portfolio?

A)   36.7%.

B)   32.1%.

C)   37.5%.

suodi

[em50]

duo1115

see

tomathome

aba

maxsimax

thanks

lhaku

 ty

blustxz

1

xbedai

Thanks

frondzx

up

lenny_chen

x