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In: Finance

Year A Returns B Returns 2005 -4.6 15.7 2006 1.7 -6.7 2007 -31.5 -26.5 2008 -11.6...

Year A Returns B Returns
2005 -4.6 15.7
2006 1.7 -6.7
2007 -31.5 -26.5
2008 -11.6 -3.7
2009 29.8 9.6
2010 26.9 8.6
2011 22.9 4.7
2012 50.7 42.7
2013 37.3 41.7
2014 30.5 39.2

The following​ table, LOADING...​, contains annual returns for the stocks of Company Upper A ​(Upper A​) and Company Upper B ​(Upper B​). The returns are calculated using​ end-of-year prices​ (adjusted for dividends and stock​ splits) retrieved from ​http://www.finance.yahoo.com/. Use the information to create an Excel spreadsheet that calculates the standard deviation of annual returns over the​ 10-year period for Upper A​, Upper B​, and of the​ equally-weighted portfolio of Upper A and Upper B over the​ 10-year period. ​(Hint​: Review the Excel screenshot on page 173​.)

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.


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