Listed below are the annual rates of return earned on Stock X, Stock Y and Stock Z over the past 6 years. Year Stock X Stock Y Stock Z 2014 20% 16% 0% 2015 15% 17% -2% XXXXXXXXXX% 15% 1% 2017 30% 11%...


Listed below are the annual rates of return earned on Stock X, Stock Y
and Stock Z over the past 6 years.
Year Stock X Stock Y Stock Z
2014 20% 16% 0%
2015 15% 17% -2%
2016 -10% 15% 1%
2017 30% 11% 0%
2018 25% 5% 1%
2019 14% -25% 1%
As risk-adverse investor, what portfolio would you choose? Here are the options:
Stock X only, Stock Y only, Stock Z only, a 50/50 split portfolio made of X & Y,
or a 90/10 split portfolio made of X & Y. Show your calculations and support your
choice.



Jun 08, 2022
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