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QUESTION: The following are the yearly returns for companies A and B: Year Company A Company B 2000 12% 14% 2001 3% 6% 2002 11%

QUESTION:

The following are the yearly returns for companies A and B:

Year Company A Company B
2000 12% 14%
2001 3% 6%
2002 11% 12%
2003 12% 7%
2004 14% 10%
2005 12% 14%
2006 8% 8%
2007 11% 14%
2008 14% 13%
2009 13% 15%
2010 9% 15%
2011 12% 7%
2012 13% 9%
2013 15% 4%
2014 11% 13%
2015 7% 9%

CALCULATE:

1.Average Return for A

2. Average Return for B

3. Variance for A

4. Variance for B

5. Covariance A,B

6. Standard Deviation for A and B

7. Expected return of the portfolio with 65% A and 35% B

8. Variance of the portfolio in (7)

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