The following table shows the annual returns on a portfolio of small stocks during the 20-year period

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The following table shows the annual returns on a portfolio of small stocks during the 20-year period from 1976 to 1995. What is the average return and standard deviation of this portfolio? How do they compare with the 1976 to 1995 average return and standard deviation of the common stock portfolio whose annual returns are shown in Table 1.1?
The following table shows the annual returns on a portfolio
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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