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(a) Using the monthly returns, calculate the average return on shares of each company from February 2015 - December 2017. Compare them with the average
(a) Using the monthly returns, calculate the average return on shares of each company from February 2015 - December 2017. Compare them with the average return on the ASX200 index.
(b) Suppose an investor created an equally weighted portfolio of these five companies (i.e. invested 20% of funds in each company). What would be the average return on the portfolio? Explain how you derived your answer.
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