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F1101 Risk-Return HW for Portfolios Annual Return Asset X Annual Return Asset Y Annual Return Asset Z Annual Return Annual Return Portfolio XY Portfolio XZ
F1101 Risk-Return HW for Portfolios Annual Return Asset X Annual Return Asset Y Annual Return Asset Z Annual Return Annual Return Portfolio XY Portfolio XZ (50-50%) (50-50%) 8.00% 10.00% 12.00% 14.00% 16.00% 16.00% 14.00% 12.00% 10.00% 8.00% 8.00% 10.00% 12.00% 14.00% 16.00% Elr)p = op= CVp Instructions a. Characterize returns of Assets X and Y. b. Characterize returns of Assets X and Z c. Calculate expected return and standard deviation for XY. d. Calculate expected return and standard deviation for XZ f. Graph the returns of each portfolio over time; X-Axis years and Y-axis % return. e. Interpret your results from the standpoint of a potential investor considering an investment in one of these two portfolios
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