What is average return-variance and standard deviation

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Reference no: EM131333454

Below is annual stock return data on Hollenbeck Corp and Luzzi Edit, Inc.

Year Hollenbeck Luzzi Edit

2010 10% -3%

2011 15% 0%

2012 -10% 15%

2013 5% 10%

a. What is the average return, variance, and standard deviation for each stock?

b. What is the expected portfolio return on a portfolio comprised of

i. 25% Hollenbeck Corp and 75% Luzzi Edit?

ii. 50% Hollenbeck Corp and 50% Luzzi Edit?

iii. 75% Hollenbeck Corp and 25% Luzzi Edit?

c. Without doing any calculations, would you expect the correlation between the returns on Hollenbeck Corp and Luzzi Edit's stock to be positive, negative, or zero? Why?

Reference no: EM131333454

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