Question
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.
Attempt 1/10 for 10 pts.
Part 1
What was the portfolio return in 2021?
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Attempt 1/10 for 10 pts.
Part 2
What was the portfolio return in 2020?
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Attempt 1/10 for 10 pts.
Part 3
What was the average annual portfolio return over all years?
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Attempt 1/10 for 10 pts.
Part 4
What was the annual standard deviation of portfolio returns?
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