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Below is annual stock return data on ABC Corp and XYZ, Inc. Year ABC XYZ 2010 10% -3% 2011 20% 0% 2012 -10% 20% 2013
Below is annual stock return data on ABC Corp and XYZ, Inc.
Year | ABC | XYZ | |||
2010 | 10% | -3% | |||
2011 | 20% | 0% | |||
2012 | -10% | 20% | |||
2013 | 3% | 10% |
average rate of return for ABC 5.75% for XYZ 6.75%
standard deviation for ABC 12.61% for XYZ 10.44%
What is the expected portfolio return on a portfolio comprised of i. 25% ABC and 75% XYZ? ii. 50% ABC and 50% XYZ?
(Round answers to 3 decimal places)
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