- A Portfolio consists of three securities P, Q & R with the following parameters.
|
Particulars |
P |
Q |
R |
Correlation Coefficient |
|
Expected Return(%) |
28 |
24 |
22 |
|
|
Standard Deviation(%) |
30 |
26 |
24 |
|
|
Correlation Co-Efficient |
|
|
|
|
|
PQ |
|
|
|
-0.5 |
|
QR |
|
|
|
+0.4 |
|
PR |
|
|
|
+0.6 |
If the securities are equally weighted , how much is the risk & return of the portfolio of these three securities.
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