The following table shows the expected returns on three assets X, Y, Z for the period...

 

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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. Year Rx (%) Ry (%) Rz (%) 2017 8 24 8 2018 10 20 12 2019 12 16 16 2020 14 12 20 2021 16 8 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. 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. Year Rx (%) Ry (%) Rz (%) 2017 8 24 8 2018 10 20 12 2019 12 16 16 2020 14 12 20 2021 16 8 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.