Question: Question 5 The following table shows the expected returns on three assets X, Y, Z for the period 2017-2021. Assume that the investor is willing
Question 5 The following table shows the expected returns on three assets X, Y, Z for the period 2017-2021. Assume that the investor is willing to form a portfolio of X and Y or X and Z. He also is planning to invest 2/3 of his investment funds in X and 1/3 in Y or Z. Rx (%) Rz (%) Year 2017 2018 2019 2020 2021 Ry (%) 24 20 16 12 12 16 20 12 14 24 Answer the following questions accordingly: 1. Calculate the average expected return on portfolio X and Y. 2. Calculate the average expected return on portfolio X and Z. 3. Calculate the standard deviation of portfolio X and Y. 4. Calculate the standard deviation of portfolio X and Z. 5. What is your advise to this investor
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