46. The covariance matrix for a portfolio is given below.
Security | A | B |
A | 480 | 140 |
B | 140 | 600 |
49. The table below shows weighting and returns of different asset classes comprising a portfolio:
Asset class | Asset allocation (weight) (%) | Asset class return (%) | Correlation with equities class (%) |
Equities | 65 | 22 | 100 |
Bonds | 30 | 8 | 30 |
Cash and equivalents | 5 | 1 | 25 |
Company | Expected Return | Standard Deviation |
Gala Cement | 10% | 8% |
Aqua Fertilizer | 17% | 20% |