Norvell Mullen

Annual Annual

Date Close Price Dividend Return(%) Close Price Dividend Return(%)

12/31/2014	24.00			28.00
12/31/2015	30.25	0.92	29.88	32.65	0.86	19.68
12/31/2016	27.50	1.12	-5.39	30.35	0.98	-4.04
12/31/2017	32.50	1.32	22.98	40.20	1.10	36.08
12/31/2018	29.90	1.52	-3.32	43.70	1.22	11.74
12/31/2019	35.20	1.72	23.48	40.50	1.34	-4.26

Estimated s_Norvell = 16.56% Estimated s_Mullen = 17.03%

5. You must now compute the standard deviation of the annual returns on the portfolio described in question 1 using two methods. For question 5, use the actual annual returns of the equally weighted portfolio calculated in question 1 to calculate the portfolio standard deviation.

6. For question 6, use the equation for the variance of a 2-asset portfolio that includes the security weights, the variances of each of the securities, and the covariance between the returns of the two securities. How do your answers compare?