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You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:
Year RA RB
2009 20% 5%
2010 42% 15%
2011 20% 13%
2012 8% 50%
2013 25% 12%
Calculate the standard deviation of returns for each stock and for the portfolio.
I know the answersto be
A-25.3
B 24.3
portfilio 16.3
However, I am not able to figure out how to get ther.
I need step by step please.
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