Consider the following covariances between securities: Duke Microsoft Wal-Mart Duke 0.0568 -0.0193 0.0037 Microsoft -0.0193 0.2420 0.1277 Wal-Mart 0.0037 0.1277 0.1413 What is the variance on a portfolio that is made up of $6000 investments in Microsoft and a $4000 investment in Wal-Mart stock?

Consider the following covariances between securities: Duke Microsoft Wal-Mart Duke 0.0568 -0.0193 0.0037 Microsoft -0.0193 0.2420 0.1277 Wal-Mart 0.0037 0.1277 0.1413 What is the variance on a portfolio that is made up of $6000 investments in Microsoft and a $4000 investment in Wal-Mart stock?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 20P

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Question

Consider the following covariances between securities:

	Duke	Microsoft	Wal-Mart
Duke	0.0568	-0.0193	0.0037
Microsoft	-0.0193	0.2420	0.1277
Wal-Mart	0.0037	0.1277	0.1413

What is the variance on a portfolio that is made up of $6000 investments in Microsoft and a $4000 investment in Wal-Mart stock?

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