You hold an equally-weighted (half invested in each) portfolio consisting of two stocks A and B, whose returns for the past three years are given below.                                  Year              Stock A            Stock B                                 2018                 24%                -8%                                   2019                 -4%                20%                                 2020                 10%                 6% What are the average return and standard deviation of your portfolio AB?   Average return is  %, standard deviation is  %. Round your answer to a whole number, e.g., x or xx. (Hint: Think of portfolio return each year.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...
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You hold an equally-weighted (half invested in each) portfolio consisting of two stocks A and B, whose returns for the past three years are given below. 

                                Year              Stock A            Stock B
                                2018                 24%                -8%  
                                2019                 -4%                20%
                                2020                 10%                 6%

What are the average return and standard deviation of your portfolio AB?   Average return is  %, standard deviation is  %. Round your answer to a whole number, e.g., x or xx. (Hint: Think of portfolio return each year.)

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