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Richard must decide how to allocate the capital in his portfolio. Richard has $21,000 available to invest. He finds the rates of return for four
Richard must decide how to allocate the capital in his portfolio. Richard has $21,000 available to invest. He finds the rates of return for four stocks for the past 12 years and the results are give below. Richard plans to invest 25% of his funds in each stock. a) How much will he invest in each stock? (1 Mark) b) The expected return of Richard's porfolio is: (2 Marks)(Round your answer to one one-hundreth of a percent) c) The standard deviation of Richard's portfolio return is: (1 Mark)(Round your answer to one one-hundredth of a percent) Year Stock A (%) Stock B (%) Stock C (%) Stock D (%) 1 -2.990 0.000 1.530 -5.510 2 33.970 9.240 -7.710 49.930 3 26.430 7.355 -5.825 38.620 4 24.430 6.855 -5.325 35.620 5 -18.990 -4.000 5.530 -29.510 6 32.910 8.975 -7.445 48.340 7 72.410 18.850 -17.320 107.590 8 26.910 7.475 -5.945 39.340 9 10.610 3.400 -1.870 14.890 10 35.970 9.740 -8.210 52.930 11 -10.810 -1.955 3.485 -17.240 12 -2.990 0.000 1.530 -5.510
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