(Solution Library) Assume that the All Ordinaries Index is described by a probability distribution that has a variance from year to year of 16,000. Louise
Question: Assume that the All Ordinaries Index is described by a probability distribution that has a variance from year to year of 16,000. Louise buys shares in three companies: $34,364 in Allied Alliances, which has a beta value of 0.7, $29,512 in Better Buildings, which has a beta value of 1.6, and $21,173 in Corny Constructions, which has a value of 0.7. What is the variance of the probability distribution that describes the return on the portfolio? (Answer to 2 decimal places.)
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