The following var-cov matrix of market index M, stock S, and…
The following var-cov matrix of market index M, stock S, and stock B: | M S B M | 0.1 0.04 0.05 S | 0.2 0.06 B | 0.3 Investor K invests $5,000 in Portfolio K with $500 in S and $4,500 in B. Calculate the total risk of Portfolio K, the systematic risk of Portfolio K, and the unsystematic risk of Portfolio K.