MATH 1 Calculate the covariance between Share JAY and KAY returns.

Question 1: Portfolio valuationConsider shares in two companies, JAY and KAY, as follows:Expected ReturnE(R)Standard DeviationsCorrelation CoefficientrShare JAY12%18%– 0.3Share KAY24%32%a) Calculate the covariance between Share JAY and KAY returns.b) What is the expected return and standard deviation of returns on a portfolio comprising 35% in Share JAY and 65% in Share KAY?c) If you wanted to create a portfolio consisting only of these two shares, how much would you need to invest (weights) in each share so that your portfolio return would be equal to 15.6%? Note: do not round.d) Using the weights calculated in part c), calculate the variance and standard deviation of your portfolio.

Order your essay today and save 30% with the discount code: KIWI20