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Stock A and B have the following historical returns. assume a portfoloio of 50% of stock A and 50 % of stock B CALCULATE THE

Stock A and B have the following historical returns. assume a portfoloio of 50% of stock A and 50 % of stock B

CALCULATE THE AVERAGE RATE OF RETURN, VARIANCE, COVARIANCE, COORELARALTION COEEFICENT AND STANDARD DEVIATION OF THE PORTFOLIO

year

Stock A returns Ka

Stock B returns Kb

1997

10%

3 %

1998

18.5 %

21.29 %

1999

38.67%

44.25 %

2000

14.33 %

3.67 %

2001

33 %

28.3 %

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