Question: Using the data in problem 9, a. Calculate the average rate of return and standard deviation of return for the TSX, government bonds, and Treasury
a. Calculate the average rate of return and standard deviation of return for the TSX, government bonds, and Treasury bills between 2010 and 2014.
b. Form a portfolio with one-third in each of the 3 securities and calculate its average rate of return and standard deviation. Can you see any benefit from diversification?
Data from problem 9,
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Government Long Bond T-Bill Return Year TSX Return Return .0064 0317 2010 .2215 2011 -.0812 .0093 0276 .0096 2012 .0187 0183 2013 .0796 .0097 0227 2014 .0715 .0092 0218
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