Using the data in the following? table,
2010 2011 2012 2013 2014 2015Stock A -10% 20% 5% -5% 2% 9%Stock B 21% 7% 30% -3% -8% 25%
consider a portfolio that maintains a 50% weight on stock A anda 50% weight on stock B.
a. What is the return each year of this? portfolio?
b. Based on your results from part ?(a?), compute the averagereturn and volatility of the portfolio.
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