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2. Risk. (15 points) Suppose you are considering the risk of a portfolio made up of company A stock and company B stock. Presented in

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2. Risk. (15 points) Suppose you are considering the risk of a portfolio made up of company A stock and company B stock. Presented in the table are historical annual returns to each. Stock A Stock B 2015| 10.00% 6.00% 2016 7.00% 2.00% 2017 15.00% 5.00% 2018) -5.00% 1.00% 2019 8.00% -2.00% i. Calculate the average annual return and the volatility of returns for each. (2 points) ii. Calculate the range of values we can be 95% sure returns will fall within for each. (3 points) iii. Suppose you build a portfolio of 25% in A and 75% in B, calculate expected returns, volatility, and a 95% confidence interval for the portfolio. (10 points)

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