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Can someone explain to me how to answer Questions 3 & 4? Thanks Tutorial 8 - Risk and Return 1. You purchased 150 shares in

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Can someone explain to me how to answer Questions 3 & 4? Thanks

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Tutorial 8 - Risk and Return 1. You purchased 150 shares in ABC Ltd at the beginning of the year at a price of $75.15. During the year the company paid a dividend of $1.12 per share and the share price closed the year at $67.87. What was your dollar return on the investment? What is your percentage return? 2. Why is diversification an important concept in finance? 3. Using the following, calculate the average returns and the standard deviations for X and Y. Which share will perform better next year? Year Return on X Return on Y 1 14% 32% N 21% -5% W 17% 17% 4 9% -12% 23% 45% 4. Calculate the expected return and standard deviation for a portfolio consisting of 30% in Ant Ltd and the remainder in Bell Ltd. State of Probability Rate of return Rate of return economy of state Ant Ltd Bell Ltd Recession 15% 2% -30% Normal 55% 10% 18% Boom ??? 15% 31%Tutorial 8 - Risk and Return 1. You purchased 150 shares in ABC Ltd at the beginning of the year at a price of $75.15. During the year the company paid a dividend of $1.12 per share and the share price closed the year at $67.87. What was your dollar return on the investment? What is your percentage return? 2. Why is diversification an important concept in finance? 3. Using the following, calculate the average returns and the standard deviations for X and Y. Which share will perform better next year? Year Return on X Return on Y 1 14% 32% N 21% -5% W 17% 17% 4 9% -12% 23% 45% 4. Calculate the expected return and standard deviation for a portfolio consisting of 30% in Ant Ltd and the remainder in Bell Ltd. State of Probability Rate of return Rate of return economy of state Ant Ltd Bell Ltd Recession 15% 2% -30% Normal 55% 10% 18% Boom ??? 15% 31%

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