Monty is planning to invest over the next 5-year period in ABC shares. The returns over...

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Monty is planning to invest over the next 5-year period in ABC shares. The returns over the last 5 years for ABC shares have been as follows: Year Annual Return 2004 2003 2002 2001 2000 First, calculate the expected return and standard deviation of returns for if he were to invest in ABC shares alone. [Total 6 marks] ABC 12% 14% 11.5% 9.9% 15% 13% 14% 10% 8% B. The individual monthly returns for ABC and XYZ shares are provided below. XYZ 5.9% 4.4% 7% 8% 8.6% 13.2% 10% 7.5% a. Calculate the average monthly return and standard deviation of monthly returns for ABC and XYZ shares. Monty is planning to invest over the next 5-year period in ABC shares. The returns over the last 5 years for ABC shares have been as follows: Year Annual Return 2004 2003 2002 2001 2000 First, calculate the expected return and standard deviation of returns for if he were to invest in ABC shares alone. [Total 6 marks] ABC 12% 14% 11.5% 9.9% 15% 13% 14% 10% 8% B. The individual monthly returns for ABC and XYZ shares are provided below. XYZ 5.9% 4.4% 7% 8% 8.6% 13.2% 10% 7.5% a. Calculate the average monthly return and standard deviation of monthly returns for ABC and XYZ shares.

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