Question

You are examining a portfolio consisting of 3 stocks. Using the data in the table , a. Compute the annual returns for a portfolio with 30% invested in North Air, 30% invested in West Air, and 40% invested in Tex Oil b. What is the lowest annual return for your portfolio in part (a)? How does it compare with the lowest annual return of the individual stocks or portfolios in the table above a. Compute the annual returns for a portfolio with 30% invested in North Air, 30% invested in West Air, and 40% invested in Tex Oil The annual return for 2010 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 20% -2%| 7.61 % 2010 8% The annual return for 2011 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2011 30% 20% -5% 131 % The annual return for 2012 will be: Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2012 8% 5% 8% 81% The annual return for 2013 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2013 5% -2% 20% 5.9 % The annual return for 2014 will be: (Round to two decimal places.) Year North Air West Air Tex Oil Portfolio 2014 -2% 5% 30% 9.91%

These are the numbers I'm getting but then I don't know what the right answer for b) is. Please help?

I did the calculations like 3 times over and get the same results...

Thank you!!!

Answer 1

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Home ert Page Layout Formulas Data Review V s Cut ta copy." Format Painter Add-Ins Σ AutoSum , Fill В า 프. m. a-Δ. Ξミ 迣锂函Merge & Center. $, % , 弼皛 Conditional Format C Formatting ▼ as Table-styles ▼ Insert Delete Format Sort &Find & Filter Select 袖 2 Clear , ▼ ▼ ▼ Clipboard Font Alignment Cells dting EA112 DO DP DR DS DT DU DV DW DX DY DZ EA EB EC 100 101 102 103 104 105 106 107 108 109 110 PORTFOLIO RETURN WEIGHT YEAR 40% ANNUAL RETURN NORTH AIR WEST AIR TEX OIL 20 30 ON PORTFOLIO SDS$102*DS104+SDT$102*DT104+SDUS102*DU104 SAME WAY FOR OTHERS 2010 2011 2012 2013 2014 2015 7.6 < 13 20 20 9.9 14.6 30 AVERAGE RETURN 9.83 9.83 9.83 AVERAGE(DV104:DV109) 112 113 114 115 116 LOWEST ANNUAL RETURN FOR YOUR PORTFOLIO 5.9 HOW DOES IT COMPARE WITH LOWEST ANNUAL RETURN OF INDIVIDUAL STOCKS THIS IS LOWER THAN EACH INDIVIDUAL STOCK & OTHER PORTFOLIOS IN THE TABLE AS WELL EACH INDIVIDUAL STOCK HAS AVERAGE RETURN OF 9.83% 4 KE CAPM UTILITY, SHARPE, beta bond c future INDEX · INTL CAP BUD FV, ANNUITY DIR ight clean YIELD bond tru WACCRESI ex i erences: AG470 齞"z 1鳳..ctl t@ mネ4c ENG 18-03-2019