The following table summarizes the annual returns you would have made on two companiesScientific Atlanta, a satellite

Question:

The following table summarizes the annual returns you would have made on two companies—Scientific Atlanta, a satellite and data equipment manufacturer, and AT&T, the telecomm giant, from 1988 to 1998.

The following table summarizes the annual returns you would have

a. Estimate the average and standard deviation in annual returns in each company.
b. Estimate the covariance and correlation in returns between the two companies
c. Estimate the variance of a portfolio composed, in equal parts, of the two investments.

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...