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Calculate the standard deviation

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Reference no: EM131160837

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: EM131160837

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