Continue to Assume That the Returns of the Four Stocks

question 173

Essay

Continue to assume that the returns of the four stocks are no longer independent of one another,and the correlations between all pairs of stock returns are as given in the second question.Now,suppose that this investor decides to place $20,000 each in stocks B and D,and $10,000 each in stocks A and C.Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.

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Definitions:

African Sculpture

African sculpture encompasses the diverse artistic traditions of the African continent, characterized by wood carvings, bronze and stone sculptures, masks, and figures, often serving both aesthetic and ceremonial functions.

Nok

An ancient civilization in West Africa known for its early ironworking technology and distinctive terracotta sculptures that date to around 1500 BC to AD 200.

Sapi

A term referring to the Sapi-Portuguese ivories, sculptural artworks created in Sierra Leone during the 15th and 16th centuries combining African and Portuguese influences.

Saltcellars

Decorative containers used for holding and dispensing salt, often crafted from materials like silver, glass, or ceramics, and can be highly ornamental.