Question
The following information indicates percentage returns for stocks L and M over a 6-year period: Year Stock L Returns Stock M Returns 1 14.95% 20.53%
The following information indicates percentage returns for stocks L and M over a 6-year period:
Year | Stock L Returns | Stock M Returns |
1 | 14.95% | 20.53% |
2 | 14.72% | 18.45% |
3 | 16.67% | 16.36% |
4 | 17.43% | 14.97% |
5 | 17.7% | 12.16% |
6 | 19.23% | 10.42% |
In combining [LM] in a single portfolio, stock M would receive 60% of capital funds.
Furthermore, the information below reflects percentage returns for assets F, G, and H over a 4-year period, with asset F being the base instrument:
Year | Asset F Returns | Asset G Returns | Asset H Returns |
1 | 16.19% | 17.12% | 14.1% |
2 | 17.31% | 16.23% | 15.43% |
3 | 18.1% | 15.08% | 16.32% |
4 | 19.15% | 14.39% | 17.27% |
Using these assets, you have a choice of either combining [FG] or [FH] in a single portfolio, on an equally-weighted basis.
Required: Calculate the absolute percentage difference in the coefficient of variation (CV) between the stock portfolio [LM] and the portfolio which outlines the optimal combination of assets.
Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
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