Homework:Chapter 12: Systematic Risk and the Equity Risk Pr

Question 5, P 12-13 (similar to)

Part 1 of 7

HW Score: 43.33%, 6.5 of 15 points

Points: 0 of 1

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You are examining a portfolio consisting of three stocks. Using the data in the table

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,a. Compute the annual returns for a portfolio with

30%

invested in North Air,

25%

invested in West Air, and

45%

invested in Tex Oil.b. What is the lowest annual return for your portfolio in part

(a)?

How does it compare with the lowest annual return of the individual stocks or portfolios in the table above.a. Compute the annual returns for a portfolio with

30%

invested in North Air,

25%

invested in West Air, and

45%

invested in Tex Oil.The annual return for

2014

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2014	21%	10%	-1%		%