(Step-by-Step) Suppose that an individual has $14000 to invest and decides to put $1000 in each of 14 stocks picked at random from a large group listed


Question: Suppose that an individual has $14000 to invest and decides to put $1000 in each of 14 stocks picked at random from a large group listed on the local stock exchange. The mean return of the stocks in the group is 10% per year and the variance of the returns of the stocks in the group is 4% per year.

a) Calculate the expected return and variance of the 14 stock portfolios
b) Calculate a 90% confidence interval for the portfolio return.

Price: $2.99
Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document

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