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Using the data in the following table, , consider a portfolio that maintains a 5 5 % weight on stock A and a 4 5

Using the data in the following table, , consider a portfolio that maintains a 55% weight on stock A and a 45% weight on stock B.
a. What is the return each year of this portfolio?
b. Based on your results from part (a), compute the average return and volatility of the portfolio. calculation in Eq.11.9.
d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks.
a. What is the return each year of this portfolio?
Enter the return of this portfolio for each year in the table below: (Round to two decimal places.)
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