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The table below shows the historical rates of return (including dividends) for two stocks: Year Stock A Stock B 2021 6% -3% 2020 12% 23%

The table below shows the historical rates of return (including dividends) for two stocks:

Year Stock A Stock B
2021 6% -3%
2020 12% 23%
2019 8% 20%
2018 4% -12%

Stock A makes up 60% of the value of portfolio, and stock B makes up the rest. Calculate the portfolio return for each year.

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Part 1

What was the portfolio return in 2021?

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Part 2

What was the portfolio return in 2020?

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Part 3

What was the average annual portfolio return over all years?

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Part 4

What was the annual standard deviation of portfolio returns?

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