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Big Lous Financial Advisors has suggested you diversify by purchasing four stocks in equal percentages because they believe this will provide better diversification. Use the

Big Lous Financial Advisors has suggested you diversify by purchasing four stocks in equal percentages because they believe this will provide better diversification. Use the table of historical returns listed below to calculate the expected return and standard deviation of the portfolio.

Returns (%)
Year Stock A Stock B Stock C Stock D
1 14.10 18.34 9.19 8.27
2 14.86 18.66 6.91 11.46
3 9.90 13.52 8.02 4.02
4 12.17 13.51 10.09 8.60
5 10.07 13.30 7.96 4.64

a. What is the standard deviation for each stock in the portfolio? (Enter your answer as a percent rounded to two decimal places.)

Stock A %

Stock B %

Stock C %

Stock D %

b. What is the expected return for the portfolio? (Enter your answer as a percent rounded to two decimal places.)

Portfolio expect return %

c. What is the standard deviation of the portfolio? (Enter your answer as a percent rounded to two decimal places.

portfolio standard deviation %

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