1      Consider the following returns: Year End Stock      Y Realized Return Stock        Z Realized Return 2004                   -14.6%   0.2% 2005                   4.3%                               -3.2% 2006                   -58.1%...

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Finance

1      Consider the followingreturns:

Year End Stock      Y Realized Return Stock       Z Realized Return

2004                 -14.6%   0.2%

2005                 4.3%                             -3.2%

2006                 -58.1% -27.0%

2007                 71.1%                           27.9%

2008                 17.3%                           -5.1%

2009                 0.9%                             -11.3%

Calculate the variance and expected return on a portfolio thatis made up of equal investments in Stock Y and Stock Z stock.

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1      Consider the followingreturns:Year End Stock      Y Realized Return Stock       Z Realized Return2004                 -14.6%   0.2%2005                 4.3%                             -3.2%2006                 -58.1% -27.0%2007                 71.1%                           27.9%2008                 17.3%                           -5.1%2009                 0.9%                             -11.3%Calculate the variance and expected return on a portfolio thatis made up of equal investments in Stock Y and Stock Z stock.

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