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Please read carefully and show work Details Assume that your uncle holds just one stock East Coast Bank (ECB), which he thinks has very little
Please read carefully and show work
Details Assume that your uncle holds just one stock East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years. SHOW WORK Year ECB WCB 2016 40% 40% 2017-10% 15% 2018 35% -5% 2019-5% -10% 2020 15% 35% What is the average return for each company? What is the standard deviation for each of the stock Step by Step Solution
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