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For the next 4 questions suppose the following holds: Suppose the security I and security J have the following historical Teturns: Year 2015 2016 2017 rI rJ 20% | 40% 29% -12% 36% -25% What is the (arithmetic) average return on security 1? 9.1796 12.33% 13.00% 014.18% 15.52%
What is the standard deviation of the return on security 1? (Use n-1 for the denominator.) О 9.09% О 17.39% О 20.82% О 21.55% 25.18%
Suppose you invest 50% of your money in I and the rest in J to form a portfolio P. What is the average return on portfolio P? О 9.17% 11.33% 13.15% 14.67% 17.00%
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Return-Arithmetical return(Return-Arithmatical return)A2 0.01 0.03 0.06 0.09 Portfolio is 50% 30.00% 32.50% 18.50% 44% 15% 67% Return-Average return (Return-Average return)2 Year 2015 2016 2017 Total Count 20% 29% 12% 37% Year 2015 2016 2017 Total 86% 25% 51% 8% 17% 24% 60% 65% 37% 15.33% 0.0235111 17.83% 0.0318028 33.17% 0.1100028 0.17 ard Deviati 1.55 Standard Deviati 0.08 Total/Count) Total/n-1) Square root Total/Count Total/n-1) Square root

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