Portfolio Return and Variance (Calculations for CFA® and FRM® Exams)

AnalystPrep's Concept Capsules for CFA® and FRM® Exams
This series of video lessons is intended to review the main calculations required in your CFA and FRM exams.
For Level I Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: analystprep.co...
For FRM (Part I & Part II) Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: analystprep.co...
AnalystPrep is an Official GARP-Approved Exam Preparation Provider

[@twagirayezusamuel5141]

Thanks, and you continue to share other course

[@azboshippuden3770]

These are great - thank you so much

[@analystprep]

Glad you like them! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@SherifaIssifu-cj5ln]

Please do some examples where you are either given portfolio standard deviation or the portfolio expected return and you have to compute portfolio weights.

[@papiharvey]

Thank you!

[@analystprep]

You're welcome!

[@user-sf9ym8kd6e]

Although answer C is correct, its a little off from the actual answer. The actual answer is 0.00849, not 0.00851. The mistake is in calculating the covariance, where the actual covariance is 0.00005550, not 0.0000561. I've calculated it multiple times so I'm pretty sure of it. Hope that helps.

[@janetran5979]

Same, I thought I was wrong and had to recalculate multiple times, the incorrect part was the 2nd probability 0.6(0.08-0.082)(0.05-0.04975) which should have resulted in a negative number -0.0000003, but they got it as positive 0.0000003 so ended up with covariance of 0.0000561

[@coffeeisticseema6248]

👍

[@analystprep]

👍

[@sokha55]

How do you determine which calculation use percentage and which arent? In example 1 the question's data use percentage, but removed in computation, but the the result is back on percentage. Thanks

[@annog6673]

5:43 in the note is a litle mistake :) The last sigma should be the rho for correlation :)