World Wide Widget Manufacturing, Inc., has decided to invest in some stock. As CFO, you have been asked to review the portfolio. First, you will need to measure the past performance of the investments. Then, measure the past returns risk of the investment. Lastly calculate the average return and risk of the portfolio. What is the average return and standard deviation of returns for these two companies? What is the average return of a portfolio consisting of 60 percent of Company A and 40 percent of company B ? Comapny A Company B Year 1 5.23 % 13.51% Year 2 8.91 -9.35 Year 3 7.32 2.44 Year 4 -15.81 3.12 Year 5 -8.32 14.81 Year 6 25.98 18.36 Year X Y X-X^ Y-Y^ (X-X^)^2 (Y-Y^)^2 (c*d) 1 5.23 13.51 1.35 6.36 2 40 8.56 2 8.91 -9.35 5.03 -16.50 25 272 -82.90 3 7.32 2.44 3.44 -4.71 12 22 -16.17 4 -15.81 3.12 -19.70 -4.03 388 16 79.34 5 -8.32 14.81 -12.21 7.66 149 59 -93.51 6 25.98 18.36 22.10 11.21 488 126 247.72 X^ 3.89 7.15 - Covariance 23.84 A B Portfolio Average Return 3.89 7.15 Share of portfolio 60% 40% Average return of Stock 2.33 2.86 5.19 Standard Deviation 13.31 9.44 18.20 I already asked this question and this was the answer that I got but i am not understanding how they got the standard deviation and i need to be able to show my work can someone help me understand this please