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4. Following are the data for returns (%) of the stocks Cure and Dew. Please answer the questions below using available data: Periods Cure Dew

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4. Following are the data for returns (%) of the stocks Cure and Dew. Please answer the questions below using available data: Periods Cure Dew 1 17 2 3 5 3 20 25 4 18 22 a. Calculate average, standard deviation and coefficient of variation for past returns of each stock. Assume equal weights. b. Consider the case of an investor holding a portfolio consisting of 50% of each stock. What is average, standard deviation and CV of the portfolio? Which would you like to hold; Cure, Dew or the portfolio? Why? (Hint: The return of the portfolio is the arithmetic average of returns of underlying stocks.)

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