Question
You hold an equally-weighted (half invested in each) portfolio consisting of two stocks A and B, whose returns for the past three years are given
You hold an equally-weighted (half invested in each) portfolio consisting of two stocks A and B, whose returns for the past three years are given below.
Year Stock A Stock B
2018 32% -10%
2019 -4% 26%
2020 16% 6%
What are the average return and standard deviation of your portfolio AB? The average return is %, the standard deviation is %. Round your answer to a whole number, e.g., x or xx. (Hint: Think of portfolio return each year.)
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Financial Analysis with Microsoft Excel
Authors: Timothy R. Mayes, Todd M. Shank
7th edition
1285432274, 978-1305535596, 1305535596, 978-1285432274
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