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Worldwide Widget Manufacturing, Inc., has decided to invest in some stock. As CFO, you ve been asked to review the portfolio. First, you ll need
Worldwide Widget Manufacturing, Inc., has decided to invest in some stock. As CFO, youve been asked to review the portfolio. First, youll 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.
The following table shows the annual returns for Company A and Company B which are part of the investment portfolio youre interested in
Company A Company B
Year
Year
Year
Year
Year
Year
Whats the average return and standard deviation of returns for these two companies? Whats the average return and standard deviation of returns for the portfolio? Whats the average return of a portfolio consisting of percent of Company A and percent of Company B
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