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Question 7 Below is annual stock return data on ABC Corp and XYZ, Inc. Year ABC XYZ 2010 7% -3% 2011 20% 0% 2012 -7%

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Question 7 Below is annual stock return data on ABC Corp and XYZ, Inc. Year ABC XYZ 2010 7% -3% 2011 20% 0% 2012 -7% 20% 2013 3% 7% (a) X Your answer is incorrect. Try again. What is the average return and standard deviation for each stock? (Round answers to 2 decimal places, e.g. 52.75.) ABC XYZ Average return .02% .01 || % X Standard deviation 12.50 || % 10.44 || % (b) What is the expected portfolio return on a portfolio comprised of i. 25% ABC and 75% XYZ? ii. 50% ABC and 50% XYZ? (Round answers to 3 decimal places, e.g. 5.275.) E(Portfolio Return) 25% ABC and 75% XYZ % 50% ABC and 50% XYZ %

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