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2. The table below shows the returns for company A and company B over the past 5 years. Year 2015 2016 2017 2018 2019 Return

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2. The table below shows the returns for company A and company B over the past 5 years. Year 2015 2016 2017 2018 2019 Return A 5.00% 20.00% -15.00% 13.00% 8.00% Return B 30.00% -5.00% 24.50% 10.00% 13.00% a) Calculate the average return for each company Average Return A: Average Return B: A/ B) Calculate the standard deviation for each company Standard Deviation A = Standard Deviation B = Estimate the correlation in returns between Company A and Company B Correlation - A/ If you invest 40% of your portfolio in Company A and the remaining 60% in Company B, what is the standard deviation of your portfolio? Standard Deviation of Portfolio A/

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