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10) Using the data in the following table, m.consider a portfolio that maintains a 30% weight on stock and a 70% weight on stock 8.

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10) Using the data in the following table, m.consider a portfolio that maintains a 30% weight on stock and a 70% weight on stock 8. a. What is the return each year of this portfolio? b. Based on your results from part (a), compute the average return and volatility of the portfolio c. Show that the average return of the portal is equal to the weighted average of the average retums of the two Mooks, and the volatility of the portfolio equals the same result as from the calculation in EG 11.9 d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks What is the return each year of this portfolio? Enter the return of this portfolio for each year in the table below Round to two decimal places) Year 2010 2011 2012 2013 2014 2015 Portfolio Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A Stock B 2010 -6% 29% 2011 5% 25% 2012 7% 2% 2013 - 5% - 3% 2014 2% - 6% 2015 5% 25% Print Done

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