Calculations
Portfolio Return = (2%*23.6%) + (65.5%*1.7%) + (10%*23.3%) + (10.3%*2.5%) + (8%*33.1%) + (4.2%*-1.0%) = 6.77558000% Portfolio Risk () = 14.2% Based on the calculations, investing in a portfolio comprising of stocks from Disney, Citigroup, General Electric, Morgan Stanley, Home Depot and Ford would attract a return of 6.78% and risk of 14.2%. Evidently, the individual stocks comprise of highly risky assets (Morgan Stanley, and Citigroup) and the other assets are have relatively low risk. Evidently, investors would gain from such a portfolio although the risk is very high. The combination of assets in to a portfolio helps to diversify the risks ...