Question: Using the data in the following table, consider a portfolio that maintains a 50% weight on stock A and a 50% weight on stock B.
Using the data in the following table, consider a portfolio that maintains a 50% weight on stock A and a 50% weight on stock B. Year 2009 2010 2011 2012 Stock A - 5% Stock B 21% 29% 23% a What is the return each year of this portfolio? b. Based on your results from part a, compute the average return and volatility of the portfolio c Calculate the average of the average returns of the two stocks and compare it to the average return of the portfolio d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks a What is the return each year of this portfolio? Enter the return of this portfolio for each year in the table below Year 2009 2010 2011 Portfolio (Do not round until the final answer. Then round to two decimal places.) b. Based on your results from part a, compute the average return and volatility of the portfolio Click to select your answers) vascriptidoExencies O Type here to search e @
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