Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Xerox and Yirox are big names in the Food industry. The following data are for the actual returns on shares of Xerox (X) and that
- Xerox and Yirox are big names in the Food industry. The following data are for the actual returns on shares of Xerox (X) and that of Yirox (Y):
Year Stock Xs Returns, rX Stock Ys Returns, rY | Stock Xs Returns, rX | Stock Ys Returns, rY |
2015 | (24.25%) | 5.50% |
2016 | 18.50 | 26.73 |
2017 | 38.67 | 48.25 |
2018 | 14.33 | (4.5) |
2019 | 39.13 | 43.86 |
- Calculate the average rate of return for each stock during the period 2015 through 2019. (2+2)
- Assume that someone held a portfolio consisting of thrice as many shares of Stock X than that of Stock
Y. What would be the expected return of this portfolio investment? (4)
- Now calculate the standard deviation of return for the portfolio. (4)
- Calculate the coefficient of variation of this portfolio investment. (2)
- Interpret the coefficient of variation of the portfolio to help make sound decision. (1)
** please give your calculation part, its required and its a request. plz.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started