The Table shows the annual return on stock market, Government of Canada Bond and Treasury bills from
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Using the data in the Table above,
a. Calculate the average rate of return and standard deviation of return on TSX, government bonds, and Treasury bills between 20010 and 2014.
b. Form a portfolio with one-third invested in each of the three securities and calculates its average rate of return and standard deviation. Do you find any benefit from diversification here? How?
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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a Calculate the average rate of return and standard deviation of return on TSX g...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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