Q7.	Calculate the standard deviation and expected return for the
portfolio given below, and work out how each stock contributes to the
portfolio?s risk.? (10%)

Stock	%
held	Expected return	Standard deviation	Correlation among stocks
Stock A         Stock B          Stock C  
A	40	15	18	1	0.1	0.4
B	30	16	24	0.1	1	0.5
C	30	20	36	0.4	0.5	1

Hi!!

For references about the formulas used to answer this question please
refer to the following article at Wikipedia:
"Modern portfolio theory": 
(see the Mean and Variance section)
http://en.wikipedia.org/wiki/Modern_portfolio_theory

Good luck!!

Thank you very much - I could calculate Expected Return as 16.8% and
Standard deviation of the portfolio as 19.31%

How each stock contributes to portfolio risk? What is the formula?  We
have correlation between AB and AC, BA and BC, CA and CB.

Thanks