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A certain investor has the following Stock Returns for the past 5 years. The investor, as a percentage of total portfolio owns 60% of Alpha
A certain investor has the following Stock Returns for the past 5 years. The investor, as a percentage of total portfolio owns 60% of Alpha stock and the remaining in Omega stock. Years Stock Alpha Stock Omega
1 -5% -11%
2 9.5% 11.5%
3 18% 22%
4 7.33% 4.67%
5 16.8% 14.10%
What is the rate of return for each ? What is the Portfolio return? Hint: Do not forget to average for rate. What is the Standard deviation? What is the Coefficient of Variation?
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