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Assume the information below regarding a three stock portfolio. Calculate the standard deviation of returns for...

Assume the information below regarding a three stock portfolio. Calculate the standard deviation of returns for the portfolio.

Stock xi ri σi

1 .5 7% 10%

2 .3 8% 11%

3 .2 11% 14%

ρ12 = .4

ρ13 = .7

ρ23 = .8

a. 21.27%

b. 8.22%

c. 9.13%

d. 9.56%

e. 11.19%

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