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Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7 Stock X 4% 7% -2% 40% 0% 10%
Returns on stocks X and Y are listed below:
Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
---|---|---|---|---|---|---|---|
Stock X | 4% | 7% | -2% | 40% | 0% | 10% | -1% |
Stock Y | 2% | -5% | 7% | 4% | 6% | 11% | -4% |
Consider a portfolio of 10% stock X and 90% stock Y.
What is the mean of portfolio returns?
Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
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