What is the average return and standard deviation of returns

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(a) The market index experienced the following returns over the first 6 months of this year: Month Return Month Return January 0.68 April -1.71 February 5.43 May -2.44 March 1.12 June 3.58 What is the average return and standard deviation of returns over this six-month period? (b) Security A has an expected rate of return of 25 percent and a beta of 2.5. Security B has a beta of 1.20. If the Treasury note rate is 8 percent, what is the expected rate of return for Security B? (c) What are the two components of a security’s risk? What can an investor do about them (answer is limited within 200 words)?

Reference no: EM13914452

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