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Average return,Standard Deviation & Coefficient of Variation

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1. I am not sure as how to explain the problems (put into words)
2. I am not sure if I had to do any graphing. Can you help me?

Part A
The market portfolio is assumed to be composed of two securities, Investment X and Y as shown below. Determine based on the information given the Average return, Standard Deviation and Coefficient of Variation. Which is the better investment?

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 the portfolio?

(see data in attached file)

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Solution Summary

Word file contains manual calculations and explanations with graph. Excel file contains calculations using formulas with reference cells.

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