I am aware that one can use the MMULT formula in excel but I would like to understand how to calculate the Covariance of returns between one group of funds and another to calculate the portfolio Standard Deviation made up of a group of funds - on paper not with a computer.|||The basic maths behind the 'magic Excel formula' is usually spelled out in Wikipedia ..
(one look at the maths behind Standard Deviations %26amp; you will understand why no-one uses pen %26amp; paper anymore :-) )
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