I'm doing my MSc in Finance and this channel has been incredible for helping me utilise what I have learned practically and enforces what is contained in the course materials. Truly a youtube gem!
Is the right table presenting variance or std deviation? since the formula for the portfolio risk is std deviation power 2, but in your calculation you didn't power 2 the std deviation.
Actually the table is called the Covariance table, but you just use sigma symbol to represent. It is a bit misleading, if the sigma table represents the Covariance Matrix, then the formula itself in the excel for calculating the S.D. for the portfolio does not need to "Power" to 2 for stock A, stock B and stock C itself. Please clarify further a bit for it.
![[대수] 쎈수학 1.1 지수 - B단계 유형 뽀개기](http://i.ytimg.com/vi/Q3U-GZ-Ijfg/mqdefault.jpg)
your video does a better job explaining than my professor.
Thank you very much!
I'm doing my MSc in Finance and this channel has been incredible for helping me utilise what I have learned practically and enforces what is contained in the course materials. Truly a youtube gem!
That really means a lot Josh! Thank you and all the best with your Masters!
Is the right table presenting variance or std deviation? since the formula for the portfolio risk is std deviation power 2, but in your calculation you didn't power 2 the std deviation.
I was also confused, but author haven't answered yet
Actually the table is called the Covariance table, but you just use sigma symbol to represent. It is a bit misleading, if the sigma table represents the Covariance Matrix, then the formula itself in the excel for calculating the S.D. for the portfolio does not need to "Power" to 2 for stock A, stock B and stock C itself. Please clarify further a bit for it.
This was very helpful. 1 question: what were the weights associated with the variance/covariance matrix? Thank you :)
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