The following are the yearly returns for companies A and B:

Year	Company A	Company B
2000	12%	14%
2001	3%	6%
2002	11%	12%
2003	12%	7%
2004	14%	10%
2005	12%	14%
2006	8%	8%
2007	11%	14%
2008	14%	13%
2009	13%	15%
2010	9%	15%
2011	12%	7%
2012	13%	9%
2013	15%	4%
2014	11%	13%
2015	7%	9%

CALCULATE:

1.Average Return for A

2. Average Return for B

3. Variance for A

4. Variance for B

5. Covariance A,B

6. Standard Deviation for A and B

7. Expected return of the portfolio with 65% A and 35% B

8. Variance of the portfolio

Answer rating: 100% (QA)

1 Average Return for A To calculate the average return for Company A we need to add up all the yearly returns for Company A and divide by the number of years 012 003 011 012 014 012 008 011 014 013 00... View the full answer