Calculate portfolio return and risk between zenon-dynamics

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Reference no: EM131831083

Fill in the spreadsheet below to calculate the portfolio return and risk between Zenon and Dynamics, given the 10 years of annual returns for each stock and portfolio weights of 50/50.

a. How would your answer change if the weights were 40 percent for Zenon and 60 percent for Dynamics?

b. How would your answer change if the weights were 30 percent for Zenon and 70 percent for Dynamics?

Zenon Dynamics

Expected return

Variance

Standard deviation

Covariance

Weight for Zenon 50%

Weight for Dynamics 50%

Expected portfolio return

Portfolio variance

Portfolio standard deviation

Zenon Dynamics

Zenon return (%) Dynam return (%)

9.89 –47.67 2014

–12.34 30.79 2013

13.56 24.78 2012

34.56 7.89 2011

–15.23 24.42 2010

20.09 34.56 2009

7.56 67.56 2008

16.47 44.67 2007

18.34 78.56 2006

15.56 51.00 2005

Jones, Charles P.; Jensen, Gerald R.. Investments: Analysis and Management, 13th Edition (Page 196). Wiley. Kindle Edition.

Reference no: EM131831083

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