Question: Here are the annual returns for five different stocks. Determine the expected return and risk for a period of five years for each of


Here are the annual returns for five different stocks. Determine the expected 

Here are the annual returns for five different stocks. Determine the expected return and risk for a period of five years for each of the shares. Year wwwwww 20x0 20x1 20x2 20x3 20x4 WMT 12.0% 9.3% 8.2% 10.3% 11.5% ADRE 7.5% 4.3% 8.1% 9.2% 6.1% Yield/Perforrmance MSFT 12.3% 12.0% 11.9% 11.8% 12.0% GOOG 13.1% 16.2% 15.7% 18.2% 19.3% BIIB 8.5% 9.1% 9.0% 8.7% 8.8% Problem 4: a. Calculate the coefficient of variation (CV) for each of the actions in problem 3. b. Explain which of the investments a risk averse investor would prefer and which a risk lover investor would prefer. Problem 5: a. Using the data provided in problem 3, determine the return and risk for a portfolio comprised of the following three stocks if you wish to distribute your investment as follows: 20% in ADRE; 65% in MSFT and 15% in GOOG. (10 points) b. How would the portfolio be affected if you distributed your investment as follows: 30% in ADRE; 25% on MSFT and 45% on GOOG? (10 points) C. Which of the two portfolios would a risk-seeking investor prefer and why?

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