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3. Ali invested two stocks, A and B. he invested

Stock A $4000 of the value of the portfolio and stock B invested $6000. The expected returns over the next 6 years, 2020-2025, for each of

these stocks are shown in the following table.

Expected returns

Stock A

10%

11

11

17

13

10

Stock B

10%

18

11

13

12

17

Year

2020

2021

2022

2023

2024

2025

N all

A. Calculate the weight, Wp, for each of the

6 years.

B. Compute the expected value of portfolio

returns over the 6-year period.

C. Calculate the standard deviation of expected portfolio returns over the 6-year

period​


Sagot :

Answer:

10%

Explanation: