Worldwide Widget Manufacturing, Inc., has decided to invest in some stock. As CFO, you$$ve been asked to review the portfolio. First, you$$ll need to measure the past performance of the investments. Then, measure the past return$$s risk of the investment. Lastly, calculate the average return and risk of the portfolio.

The following table shows the annual returns for Company A and Company B$,$ which are part of the investment portfolio you$$re interested in$.$

Company A Company B

Year $15\mathrm{.}23\%13\mathrm{.}51\%$

Year $28\mathrm{.}919\mathrm{.}35$

Year $37\mathrm{.}322\mathrm{.}44$

Year $415\mathrm{.}813\mathrm{.}12$

Year $58\mathrm{.}3214\mathrm{.}81$

Year $625\mathrm{.}9818\mathrm{.}36$

What$$s the average return and standard deviation of returns for these two companies? What$$s the average return and standard deviation of returns for the portfolio? What$$s the average return of a portfolio consisting of $60$ percent of Company A and $40$ percent of Company B$?$

After coming to a final decision, Worldwide Widget Manufacturing, Inc., has a stock portfolio that consists of the following positions, with betas shown for each stock. You$$ve been asked to calculate and evaluate the risk of the portfolio beta and the required return for your portfolio. The market return is expected to be $11$ percent, and the risk$-$free rate is $6$ percent.