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Intro The table below shows the historical rates of return (including dividends) for two stocks: Year Stock A Stock B 8% -3% 2019 2018 2017

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Intro The table below shows the historical rates of return (including dividends) for two stocks: Year Stock A Stock B 8% -3% 2019 2018 2017 12% 23% 8% 20% 2016 4% -12% Stock A makes up 80% of the value of portfolio, and stock B makes up the rest. Calculate the portfolio return for each year. Part 3 | Attempt 1/10 for 10 pts. What was the average annual portfolio return over all years? 0.078 Correct The portfolio returns for the four years are given below: Year Stock A Stock B Portfolio 2019 0.08 -0.03 0.058 2018 0.12 0.23 0.142 2017 0.08 0.2 0.104 2016 0.04 -0.12 0.008 The average portfolio return is thus 0.058 + 0.142 + 0.104 + (0.008) 4 0.078 Part 4 Attempt 3/10 for 10 pts. What was the annual standard deviation of portfolio returns? 3+ decimals Submit

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