Alpha Limited has a mixture of investment portfolios, Stock A and Stock B. The historical performance return on the stoc

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Alpha Limited has a mixture of investment portfolios, Stock A and Stock B. The historical performance return on the stoc

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Alpha Limited Has A Mixture Of Investment Portfolios Stock A And Stock B The Historical Performance Return On The Stoc 1
Alpha Limited Has A Mixture Of Investment Portfolios Stock A And Stock B The Historical Performance Return On The Stoc 1 (43.34 KiB) Viewed 31 times
Alpha Limited has a mixture of investment portfolios, Stock A and Stock B. The historical performance return on the stocks are as follows: Year Stock A Return Stock B Return % % 2017 - 10 3 2018 18 21 2019 39 44 2020 14 4 2021 33 28 REQUIRED: (1) Calculate the average rate of return for each stock during the period of 2017 to 2021. (ii) Calculate the average return on the portfolio during the period if Alpha Limited held 50% each of Stock A and Stock B. (iii) Calculate the standard deviation of each investment (iv) Calculate the coefficient correlation of the investment portfolio. (v) Calculate the standard deviation of the investment portfolio. (vi) Why is it important to use expected returns (mean), standard deviation/coefficient of variation and coefficient correlation in the investment portfolio analysis.
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