Using the data in problem 7, calculate the average rate of return and standard deviation of return

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Using the data in problem 7, calculate the average rate of return and standard deviation of return for each stock as well as for an equal-weighted portfolio of all the stocks using Excel. Do you observe any benefits from diversification?
National Central Railway, 64 Million Minerva Shipping, 38 Million San Tome Sulaco Market, 42 Million Mining, 184 Azuera,
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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