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%
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
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 Average Return for A To calculate the average return for Company A we need to add up all the yearly returns for Company A and divide by the number of years 012 003 011 012 014 012 008 011 014 013 00...
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Step: 2
Step: 3
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Statistics For Business & Economics
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
14th Edition
1337901067, 978-1337901062
