You are a junior analyst at New Guy Financial Management. The Head Analyst is doing an...

 

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You are a junior analyst at New Guy Financial Management. The Head Analyst is doing an analysis for a potential client and explaining the value of diversificat and has asked you to look at the historical returns for Austen Corp., Dickens Corp., and a portfolio with 50% weights of each of these stocks. Based on the information you have compiled below please calculate the average return and standard deviation over this 5 year period for each of the stocks and the portfo Once you have done that please explain to the Head Analyst how the results show the value of diversification. Returns Year For the toolb 2016 2017 2018 2019 2020 Austen Corp. 40% -10% 35% -5% 15% Dickens Corp. 40% 15% -5% -10% 35% Austen/Dickens Portfolio 40% 3% -15% -8% 25% You are a junior analyst at New Guy Financial Management. The Head Analyst is doing an analysis for a potential client and explaining the value of diversificat and has asked you to look at the historical returns for Austen Corp., Dickens Corp., and a portfolio with 50% weights of each of these stocks. Based on the information you have compiled below please calculate the average return and standard deviation over this 5 year period for each of the stocks and the portfo Once you have done that please explain to the Head Analyst how the results show the value of diversification. Returns Year For the toolb 2016 2017 2018 2019 2020 Austen Corp. 40% -10% 35% -5% 15% Dickens Corp. 40% 15% -5% -10% 35% Austen/Dickens Portfolio 40% 3% -15% -8% 25%

Answer rating: 100% (QA)

Here are the average returns and standard deviations for Austen Corp Dickens Corp and the 5050 portf... View the full answer