1.   Jackson has returns of 18%, -7%, -14%, and 10%, on his stock investment

What is the arithmetic average return on his stock?

What is the geometric average return on his stock?

 

2. Your portfolio consists of $3,000 in ABC stock, $4,500 of DEF stock and $2,500 of GHI stock. Expected rates of return are ABC 5%, DEF 12%, and GHI 16%. What is the portfolio expected rate of return?

 

3.  The expected return on VZ next year is 12% with a standard deviation of 20%. The expected return on ANT next year is 24% with a standard deviation of 30%. The correlation between the two stocks is .6. If Emily makes equal investments in VZ and ANT, what is the standard deviation of her portfolio?

Answer rating: 100% (QA)

1 a The arithmetic average return on Jacksons stock is calculated by summing the returns and dividin... View the full answer