a. Using the data provided in problem 3, determine the return and risk for a portfolio made up of the following three stocks if you want to distribute your investment as follows: 20% in ADRE; 65% in...

a. Using the data provided in problem 3, determine the return and risk for a portfolio made up of the following three stocks if you want to distribute your investment as follows: 20% in ADRE; 65% in MSFT and 15% in GOOG.
b. How would the portfolio be affected if you distributed your investment in the following way: 30% in ADRE; 25% on MSFT and 45% on GOOG?
c. Which of the two portfolios would a risk seeking investor prefer and why?

Extracted text: Yields Year WMT ADRE MSFT GOOG BIIB 20x0 12.0% 7.5% 12.3% 13.1% 8.5% 20x1 9.3% 4.3% 12.0% 16.2% 9.1% 20x2 8.2% 8.1% 11.9% 15.7% 9.0% 20x3 10.3% 9.2% 11.8% 18.2% 8.7% 20x4 11.5% 6.1% 12.0% 19.3% 8.8%


Extracted text: WMT ADRE MSFT GOOG BIIB Expected return Standard deviation (Risk) 10.26% 7.04% 12.00% 16.50% 8.82% 1.56% 1.90% 0.19% 2.40% 0.24% Coefficient of variation (CV) 15.2028039 26.94374257 1,559023911 14.53914004 2.706878999