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Problem 3 Returns of 3 assets for last 4 years are given in the table: Ra Rb Rb year 2015 2016 2017 2018 14 12
Problem 3 Returns of 3 assets for last 4 years are given in the table: Ra Rb Rb year 2015 2016 2017 2018 14 12 8 -6 -3 -6 16 18 16 18 -3 -6 a) Calculate average returns for assets A. (10 marks) b) Calculate average returns for assets B. (10 marks) c) Calculate standard deviation and explain which asset is riskier. (10 marks) d) If you invest 40% in asset "a" and 60% in asset "b", what will be your expected rate of return? (10 marks)
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