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Exercise #2: Risk. Consider the following data for two risky stocks Rate of Return Year ABC XYZ 2013 -5% +19% 2012 +20 +10 2011 +27

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Exercise #2: Risk. Consider the following data for two risky stocks Rate of Return Year ABC XYZ 2013 -5% +19% 2012 +20 +10 2011 +27 +4 Calculate the expected rate of return and standard deviation for a portfolio invested 35% in ABC and 65% in XYZ. ER35/65= = .............. % StDev35/65 = = .......... %

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