(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.
Deliverable: Word Document 