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Let two shares A and B, which in the last six weeks show the returns shown in the table below. 1st week 2nd week 3rd

Let two shares A and B, which in the last six weeks show the returns shown in the table below.

1st week 2nd week 3rd week 4th week 5th week 6th week
Share A 0.07 0.10 -0.04 0.05 -0.01 -0.05
Share B 0.11 0.01 -0.08 0.12 0.08 0.14

A) Calculate the average return of shares A and B for the period of 6 weeks, using the arithmetic mean. B) Assuming that there is a portfolio that includes the 2 shares in equal percentages (50% - 50%), what is the average return of the portfolio? C) Calculate the risk (standard deviation) of shares A and B. Which share do you consider more dangerous based on the criterion of the coefficient of variation (CV)?

D) Participate in a retirement plan which gives you the following options for how to collect your pension. 1st choice: Annual installments of 11,000 euros for 20 years. 2nd option: Payment of 500,000 euros at the end of the investment horizon, ie in 0 years. Knowing that the nominal interest rate is equal to 7%, evaluate the two investments.

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