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You hold an equally-weighted (half invested in each) portfolio consisting of two stocks X and Y, whose returns for the past three years are given
You hold an equally-weighted (half invested in each) portfolio consisting of two stocks X and Y, whose returns for the past three years are given below.
Year Stock X Stock Y
2012 40% -10% 2013 -5 35 2014 15 15
What are the average return and standard deviation of your portfolio XY? (Hint: Think of portfolio return each year.)
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