Question
Flowers Inc Chocolates Inc Wine Inc 2002 5.0% -10.0% -8.0% 2003 8.0% -7.0% 20.0% 2004 12.0% -3.0% 22.0% 2005 -2.0% 2.0% 20.0% 2006 -4.0% 5.0%
| Flowers Inc | Chocolates Inc | Wine Inc | |
| 2002 | 5.0% | -10.0% | -8.0% |
| 2003 | 8.0% | -7.0% | 20.0% |
| 2004 | 12.0% | -3.0% | 22.0% |
| 2005 | -2.0% | 2.0% | 20.0% |
| 2006 | -4.0% | 5.0% | 30.0% |
| 2007 | -5.0% | 45.0% | 25.0% |
| 2008 | -10.0% | 30.0% | 22.0% |
| 2009 | 25.0% | 20.0% | -2.0% |
| 2010 | 27.0% | 10.0% | -3.0% |
| 2011 | 29.0% | 12.0% | -20.0% |
| 2012 | 4.0% | 14.0% | -1.0% |
| 2013 | 5.0% | 16.0% | 10.0% |
| 2014 | 8.0% | 25.0% | 22.0% |
| 2015 | -8.0% | 4.0% | 28.0% |
The attached spreadsheet lists the annual returns of the shares of 3 companies: Flowers Inc, Chocolates Inc and Wine Inc. If an investor chooses to invest in just one of the companies, Chocolates Inc, instead of investing in an equally weighted portfolio of all 3 shares, how much higher will the risk of that investment be than the risk of the portfolio ( using standard deviation to measure risk) ? Express your answer as a percentage, rounded to 2 decimal places, eg. 5.55
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Multifamily Real Estate Investing
Authors: Francis Musau Cima Cemap
1st Edition
979-8405603179
