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    Average return,Standard Deviation

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    The market portfolio is assumed to be composed of 2 securities ,Investment Xand Yshown below .Determine based on the informationgiven the Average return,Standard Deviation and Coefficient of Variation.
    Part A
    Year Return X Return Y
    1997 16.5% 17.5%
    1998 14.2% 13.2%
    1999 13.5% 14.5%
    2000 16.1% 15.1%
    2001 12.2% 13.2%
    2002 11.5% 10.5%
    Part B
    A portfolio consists of five securities with following Beta and Proportions :What is the Beta of Portfolio?
    Asset Beta Proportions
    1 1.35 .1
    2 1.12 .2
    3 1.67 .3
    4 1.04 .2
    5 1.55 .2

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    Solution Preview

    The market portfolio is assumed to be composed of 2 securities ,Investment Xand Yshown below .Determine based on the informationgiven the Average return,Standard Deviation and Coefficient of Variation.
    Part A
    Year Return X Return Y
    1997 ...

    Solution Summary

    This provides the steps to compute the average return,Standard Deviation and Coefficient of Variation

    $2.19

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