Question: please answer all questions A-D! Using the data in the following table, , consider a portolio that maintains a 55% weight on stock A and
Using the data in the following table, , consider a portolio that maintains a 55% weight on stock A and a 45% weight on stock 8. a. What is the retum each yeur of this portelio? b, Based on your resula from part (a), compule the average return and volatility of the portlolio. caloulstion in Eq. 11.9 d. Explain why the portholo has a lower volatily than the averasp volatility of the two slocks. 2. What is the reaum each year of this portolio? Enter the resum of this portholio for each year in the table below. (Round to two decimal places) The anterage retum of the portiolio is K. (Round to two decimal places) Data table The volatify of the portolis is K. (Round to two decimal places ) c. Show that 9 the average retum of the portlolio is equal to the (weighted) awerape of the are calculation in Eq, 11.9 The (weighiled) averape of the average returns of the two socks is K. (Round to tho decir The volastity of the portolio is 6. (Plound to two decinal places) d. Explain why the portolo has a lower volatility than the omerepe volatility of the two stocks. (Click on the following icon 0 in order to copy es contents into a sproodshet). The portolis has a
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