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The following table shows the expected returns on three assets X , Y , Z for the period 2 0 1 8 - 2 0
The following table shows the expected returns on three assets X Y Z for the period Assume that the investor is willing to form a portfolio of X and Y or X and Z He also is planning to invest of his investment funds in X and in Y or Z
Year Rx Ry Rz
Answer the following questions accordingly:
Calculate the average expected return on portfolio X and Y
Calculate the average expected return on portfolio X and Z
Calculate the standard deviation of portfolio X and Y
Calculate the standard deviation of portfolio X and Z
What is your advice to this investor?
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