Question: Please show all work! 6. (4 points) Stocks A and B have the following annual realized returns Year 2013 2014 2015 2016 2017 Stock A

Please show all work! 6. (4 points) Stocks A and B

have the following annual realized returns Year 2013 2014 2015 2016 2017

Please show all work!

6. (4 points) Stocks A and B have the following annual realized returns Year 2013 2014 2015 2016 2017 Stock A 2000 590 Stock B 3090 7% -3% -8% 25% 2% 7% a) What are the average realized returns of the two stocks? (1 point) b) What are the standard deviations of the returns of the two stocks? Don't use pre-set st.dev. functions in your calculators/computers to get the answers. Please show your hand-calculation procedure. (2 points) 40% stock B? (Hint: correlation coefficient between returns of A and B is 0.8355.) (1 point)

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