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Add a column in your Excel worksheet with the average return across stocks for each month. This is the monthly return to an equally weighted
Add a column in your Excel worksheet with the average return across stocks for each month. This is the monthly return to an equally weighted portfolio of these stocks. Compute the mean and standard deviation of monthly returns for the equally weighted portfolio. Double check that the average return on this equally weighted portfolio is equal to the average return of all of the individual stocks. Convert these monthly statistics to annual statistics for interpretation.
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