Question: PLEASE DO NOT SHOW WORK THROUGH EXCEL. WILL THUMBS DOWN, THANK YOU 4.Using the following returns, calculate the average returns, the variance and standard deviations
PLEASE DO NOT SHOW WORK THROUGH EXCEL. WILL THUMBS DOWN, THANK YOU
4.Using the following returns, calculate the average returns, the variance and standard deviations for X and Y.
| Probability | Return X | Return Y |
| 25% | 27% | 0% |
| 50% | 10% | 8% |
| 25% | 5% | 20% |
- Use the information given in 4 to find expected return and variance for a portfolio that consists of 30% in X and 70% in Y. Do you notice any benefits to investing in the portfolio rather than each stock individually?
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