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Refer to Table 5.2 in UHFM. a. Construct an equal-weighted (50/50) portfolio of Investments B and C. What is the realized rate of return and

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Refer to Table 5.2 in UHFM. a. Construct an equal-weighted (50/50) portfolio of Investments B and C. What is the realized rate of return and standard deviation of the portfolio? Explain your results. b. Construct an equal-weighted (50/50) portfolio of Investments C and D. What is the realized rate of return and standard deviation of the portfolio? Explain your results. Year Rate of Return B D AB AC AD EXHIBIT 5.2 Realized Returns for Four Individual Investments and Three Portfolios -10% 30% 1 -25% 15% 10% -17,5% 2.5% 2 o 20 -5 10 10 -2.5 5.0 3 10 10 15 0 10 12. 5.0 4 20 0 35 25 10 27.5 22.5 5 30 -10 55 35 10 42.5 32.5 Rate of return 10.0% 10.0% Standard deviation 15.0% 17.0% 10.0% 12.5% 13.5% 31.6% 13.5% 0.0% 23.7% 13.3% 15.8% 15.8%

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