Historical percentage stock returns for the Robinson and Boyer Companies are listed in the following chart along with percentage returns on the market portfolio: Calculate the following based on the preceding table:

a. Mean historical returns for the two companies and the market portfolio.

b. Variances associated with Robinson Company returns and Boyer Company returns as well as returns on the market portfolio.

c. Forecast a variance and a standard deviation of returns for both the Robinson and Boyer Companies based on your calculations in parts a and b.

Transcribed Image Text:

Year Robinson 2008 4 2009 7 2010 11 2011 4 2012 5 Boyer 19 4 -4 21 13 Market 15 10 3 12 9