Explore BrainMass

Explore BrainMass

    Average Historical Return and Standard Deviation of Returns

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In planning for your retirement, you came across two potential blue-chip stocks i.e. DBS Ltd and Singtel Ltd which you are considering accumulating in your retirement fund. From your research, you noted the historical returns were as follows:
    Year ABC Return (%) Mango Return (%)
    2008 -18.0 21.8
    2009 33.0 -14.5
    2010 15.0 30.5
    2011 -0.5 -7.6
    2012 27.0 26.3

    Calculate the average historical return and standard deviation of returns for (i) DBS, (ii) Singtel and (iii) a portfolio consisting of 50% of DBS and 50% of Singtel.

    If you are a risk-averse investor, would you prefer to hold DBS, Singtel or the portfolio and why?

    © BrainMass Inc. brainmass.com June 4, 2020, 4:42 am ad1c9bdddf
    https://brainmass.com/business/dividends-stock-repurchase-and-policy/average-historical-return-standard-deviation-returns-576669

    Solution Preview

    Please see the attached file.

    In planning for your retirement, you came across two potential blue-chip stocks i.e. DBS Ltd and Singtel Ltd which you are considering accumulating in your retirement fund. From your research, you noted the historical returns were as follows:

    Year ABC Return (%) Mango Return ...

    Solution Summary

    This solution helps in computing average historical return and standard deviation of returns with step-by-step workings and all formulas shown in excel file.

    $2.19

    ADVERTISEMENT