What is the average return and standard deviation of returns

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Reference no: EM132059997

World Wide Widget Manufacturing, Inc., has decided to invest in some stock. As CFO, you have been asked to review the portfolio. First, you will need to measure the past performance of the investments.

Then, measure the past return's risk of the investment. Lastly calculate the average return and risk of the portfolio.

What is the average return and standard deviation of returns for these two companies? What is the average return of a portfolio consisting of 60 percent of Company A and 40 percent of company B ?


Comapny ACompany B
Year 1 5.23 % 13.51%
Year 2 8.91 -9.35
Year 3 7.32 2.44
Year 4 -15.81 3.12
Year 5 -8.32 14.81
Year 6 25.98 18.36

Reference no: EM132059997

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