Standard deviations of numbers

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There are three stocks to invest in: A, B and C. In one year the expected increases in price are: 10% for stock A, 15% for Stock B, and 5% for stock C. The standard deviations of these numbers are 2% for A and B and 1% for C. In other words, if X is the random variable giving the increase in value for A measured in %, then the standard deviation of X is 2. If the returns are all independent, what is the minimum variance portfolio that achieves a 10% return? (Use a spreadsheet and ‘Solver' for calculation).

Reference no: EM131360521

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