# Coefficient of Variation, Beta

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?

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/statistics/coefficient-of-variation/coefficient-of-variation-beta-53689

#### Solution Summary

The solution calculates Average Retuern, Standard Deviation and Coefficient of Variation of Investments and Beta of portfolio