Question
Let's say Tim invested 55% of his money to buy ABC Corp.s shares and 45% of his money to buy DEF Corp.s shares in 2016.
Let's say Tim invested 55% of his money to buy ABC Corp.s shares and 45% of his money to buy DEF Corp.s shares in 2016. From 2017 to 2020, ABC Corp. generated the total return percentage of 11%, 11%, 12%, 11.5%. DEF Corp. generated the total return percentage of -10%, 22%, -8%, and 19% during the same time period. What was the average rate of return for the portfolio (plain English: Tims investment as a whole) from 2017 to 2020?
8.84%
9.85%
10.48%
11.92%
Same facts as above: what is the standard deviation of the portfolios returns from 2017 to 2020?
5.63%
8.00%
7.62%
8.28%
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