Table 1. 3 computes the portfolio return and risk (in percent) using the data in Table 1.
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Table 1. 3 computes the portfolio return and risk (in percent) using the data in Table 1. 2. Use the data in your new Table 1. 2 from problem 2 to create a new Table 1. 3.
Table 1.2
Table 1.3
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Table 1.2 Actual or realized (ex post) return and risk over time (in percent terms) Years R R E(R) [R-E (R) R - E(R) 1 7 -5.2 27.04 0.4 2 13 0.64 1.4 17.64 14.44 23.04 a(R)= 82.8/4 = 20.70 o(R)=4.55 3 45 8 R 7 8 5 3 16 17 10 R = 12.2 R = 6.6 0.8 -4.2 3.8 4.8 -1.6 -3.6 3.4 [R - E(R)1 0.16 1.96 2.56 12.96 11.56 o(R) = 29.20/4 = 7.30 (R) = 2.70
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Related Book For
Investment Valuation And Asset Pricing Models And Methods
ISBN: 9783031167836
1st Edition
Authors: James W. Kolari, Seppo Pynnönen
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