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you are examining the potfolio You are examining a portfolio consisting of three stocks. Using the data in the table a. Compute the annual returns
you are examining the potfolio
You are examining a portfolio consisting of three stocks. Using the data in the table a. Compute the annual returns for a portfolio with 30% invested in North Air, 25% invested in West Air, and 45% invested in Tex Oil b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above * 8% % % Year North Air West Air Tex Olt Portfolio 2016 8% 10% The annual return for 2017 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2017 -3% 22% The annual return for 2018 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2018 -3% 4% 29% The annual return for 2019 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2019 10% 29% 8% b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above. A. The portfolio computed in part (a) had its lowest annual return in 2014 (7.75%) B. The portfolio computed in part (a) had its lowest annual return in 2015 (12.40%). C. This is lower than each individual stock and the other portfolios in the table above as well. D. This is higher than the lowest annual return of each individual stock and the other portfolios in the table above as well, West Air, and 45% invested in Tex Oil. Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Returns Portfolio Returns Year North Air West Air Tex Oil (Rw+Rw) (Rw+R1) 2014 22% 10% -3% 16.0% 3.5% 2015 29% - 4% 25.5% 9.0% 2016 8% 8% 10% 8.0% 9.0% 2017 -4% - 3% 22% -3.5% 9.5% 2018 - 3% - 4% 29% -3.5% 12.5% 2019 10% 29% 8% 19.5% 18.5% Average Return 10.3% 10.3% 10.3% 10.3% 10.3% Volatility 13.2% 13.2% 13.2% 12.1% 4.9% 22% Print Done Step by Step Solution
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