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Checked Portfolo Gain and Riak Historical Stock Retums Stock #1 Year Stock #2 0.139 0.189 0092 0.151 0.074 0.185 0.114 0.142 Suppose you invest $1,000

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Checked Portfolo Gain and Riak Historical Stock Retums Stock #1 Year Stock #2 0.139 0.189 0092 0.151 0.074 0.185 0.114 0.142 Suppose you invest $1,000 in two stocks, as follows Stock #1 Stock #2 650.00 350.00 Nolice that.the wegf-of dolars mested n stock # is 65.0% Notice that the wagt-of dolars invested in stock #2 350% At the end of the fist year the $650 earned-11-1%. (so ending voue was SS77851 The S350 oamed-13.9%. (so ending volue mas S01351 The portfollo value was worth $879 20 Al the beginning of the dolors so that the weights are the same as they were ogray. For inatance, you invest ($879 20001/0.6500)-$571.4800 in stock 1, and and $307 7200 in stock 2 second year, you re-arange your invested ou continue this process for al five years (computing ending values for each stock and the portfolio, then se-balancing then finding the new values using that years retums from the chart above). Atter doing the computations, you have six Ending Values: You will need to fill in the amounts in the four boxes). Ending Value Year 0 Year 1 Year 2 Year 3 Yeor 4 Year 5 1000 7920000000 Please complete the chart (fnd the remaining ending vakues Nofice that your porttiolio's dollar gain for year 1 s$120.80 #1 what is te bagest Imost positve, annual dollar gain from years l A Between 90 and 175 B Between 175 and 200 C Between 200 and 225 D Between 225 and 280 Please compute the annual Total Relative Retun for each year. For instance, the fiest retum is as shown below Ending Value Total Return 1000 Year 1 Year 2 Year 3 Year 4 Year 5 879 2000000000 #2 what the "sample standard deviatior one sve toto' returns, ABetween 50% ond 160% B Between 160% and 17.5% C Between l75%and i90% D Between 19.0% and 22.0%

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