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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 weight on stock A and a weight on stock
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
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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