part 4/5

Intro The following table shows realized rates of return for two stocks. A B 1 Year Stock A Stock B 2 1 5% 15% 3 2 -23% -14% 4 3 3 4 -2% 28% 5 -6% 5% 14% 4 6 6 5 8% 7 6 6 18% 8% - Attempt 2/10 for 1.43 pts. Part 1 What is the arithmetic average return for stock B? 7.17% Correct A B B C c D 1 Year Stock A Stock B Formula 59 15% 1 2. 3 3 2 -23% - 1496 6 N 4 3 -6% -2% I th 5 4 596 2896 6 5 7 6 1496 1896 0.02167 8% 8% 0.0717 -AVERAGE(C2:07) 8 Average Part 4 Attempt 1/10 for 1.5 pts. What is the arithmetic average return for a portfolio with 70% invested in stock A and the remainder in stock B (with annual rebalancing)? 4+ decimals Submit Part 5 - Attempt 1/10 for 1.5 pts. What is the variance of returns for a portfold with 70% invested in stock A and the remainder in stock B (with annual rebalancing)