Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Let's say Tim invested 50% of his money to buy ABC Corp.'s shares and 50% of his money to buy DEF Corp.'s shares in 2017.
Let's say Tim invested 50% of his money to buy ABC Corp.'s shares and 50% of his money to buy DEF Corp.'s shares in 2017. From 2018 to 2021, ABC Corp. generated the total return percentage of 11%, 13%, 11%, 12%. DEF Corp. generated the total return percentage of -10%, 30%, -11%, and 29% during the same time period. What was the average rate of return for the portfolio (plain English: Tim's investment as a whole) from 2018 to 2021? NOTE: For the purpose of this question, please use the arithmetric average, not the geometric average. 8.53% 9.61% 2.66% O 10.63% Question 34 2.64 pts Same facts as above: what was the standard deviation of the portfolio's returns? O 12.63% O 11.99% O 10.38% O 9.12%
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