Assume that you currently have a portfolio that returns 19.5%. If you add this stock to the current portfolio, what will ???happen to the average return on the portfoli
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Get it written →Assume that you currently have a portfolio that returns 19.5%. If you add this stock to the current portfolio, what will happen to the average return on the portfolio?
- Should Allied invest in the stock? Justify your response.
- What was the average return for the stock over the period of 1990 through 2010?
- What was the standard deviation for the stock over this period?
see attachment to look at graph
Submit your 2- to 3-page in a Microsoft Word document, using APA style.
The Allied Group has acquired Kramer Industries and is now considering additional investments. They have determined that there is a firm that is a good fit for their portfolio, the Kramer firm of Montana. The firm was established in 1990 and has the following historical returns:
Address all of the following questions:
· What was the average return for the stock over the period of 1990 through 2010?
· What was the standard deviation for the stock over this period?
· Assume that you currently have a portfolio that returns 19.5%. If you add this stock to the current portfolio, what will happen to the average return on the portfolio?
· Should Allied invest in the stock? Justify your response.
· Submit your 2- to 3-page paper in a Microsoft Word document, using APA style.
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