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Part 1

You are examining a portfolio consisting of three stocks. Using the data in the table

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,a. Compute the annual returns for a portfolio with

30%

invested in North Air,

25%

invested in West Air, and

45%

invested in Tex Oil.b. What is the lowest annual return for your portfolio in part

(a)?

How does it compare with the lowest annual return of the individual stocks or portfolios in the table above.

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Part 1

a. Compute the annual returns for a portfolio with

30%

invested in North Air,

25%

invested in West Air, and

45%

invested in Tex Oil.The annual return for

2014

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2014	20%	9%	-1%		%

Part 2

The annual return for

2015

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2015	31%	20%	-4%		%

Part 3

The annual return for

2016

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2016	8%	8%	9%		%

Part 4

The annual return for

2017

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2017	-4%	-1%	20%		%

Part 5

The annual return for

2018

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2018	-1%	-4%	31%		%

Part 6

The annual return for

2019

will be:(Round to two decimal places.)

Year	North Air	West Air	Tex Oil	Portfolio
2019	9%	31%	8%		%

Part 7

b. What is the lowest annual return for your portfolio in part

(a)?

How does it compare with the lowest annual return of the individual stocks or portfolios in the table above.(Select all the choices that apply.)

A.The portfolio computed in part

(a)

had its lowest annual return in

2017

(7.55%).

B.The portfolio computed in part

(a)

had its lowest annual return in

2018

(12.50%).

C.

This is lower than each individual stock and the other portfolios in the table above as well.

D.

This is higher than the lowest annual return of each individual stock and the other portfolios in the table above as well.