# Return, Standard Deviation, Coefficient Of Variation, Beta

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

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