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    Return, Standard Deviation, Coefficient Of Variation, Beta

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    The market portfolio is assumed to be composed of two securities, investment X and investment Y. Determine based on the information given the average return, standard deviation and coefficient 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%
    2202 11.5% 10.5%

    Part B

    A portfolio consists of 5 securities with the following Beta and Proportions:
    What is the Beta of the 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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    https://brainmass.com/business/beta-and-required-return-of-a-project/return-standard-deviation-coefficient-of-variation-beta-111336

    Solution Summary

    Solution answers 2 questions:
    1) calculates average return, standard deviation and coefficient variation of two securities
    2) calculates beta of a portfolio consisting of 5 securities

    $2.19

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