Consider an investment portfolio of 50000 in stock a and


Consider an investment portfolio of $50,000 in stock A and $50,000 in stock B. The expected value of A is 9.5% and B is 6%. The variance of A is 13% and the variance of B is 8%. The covariance between A and B is 18.6%. (a) Compute the portfolios weights associated with stock A and stock B. (b) Obtain the portfolio expected return. (c) Find the variance of the portfolio.

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Microeconomics: Consider an investment portfolio of 50000 in stock a and
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