Calculate the average return for each of these firms

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Reference no: EM131180611

You have a portfolio consisting of $500,000 invested in the stock of firm A and $1,500,000 invested in the stock of firm B. The returns for Firm A and Firm B are given below for the past five years: Returns Returns Year Firm A Firm B 1 0.12 0.06 2 0.15 0.14 3 0.04 0.07 4 (0.05) 0.00 5 0.09 0.13 The variance for the returns for Firm A were found to be 0.00615 The variance for the returns for Firm B were found to be 0.00325 a. Calculate the average return for each of these firms (A and B). b. Calculate the Standard Deviation for each of these firms.

Reference no: EM131180611

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