1. Following are recent returns on Google and on Coca-Cola. Year Google Coca-Cola 2017 121.67% 29.27% 2016 -16.31% 26.35% 2015 6.46% 2.24% 2014 -15.83% 13.93% 2013 178.56% 21.94% Required: a) Compute the historical return and standard deviation for each company b) Compute Coefficient of variation for both stocks To solve (c-e), assume a portfolio of $60,000 invested in these two stocks: with $24,000 invested in Google and $36,000 invested in Coca-Cola. c) Compute the portfolio return earned in each year

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. Following are recent returns on Google and on Coca-Cola.
Year
Google
Coca-Cola
2017
121.67%
29.27%
2016
-16.31%
26.35%
2015
6.46%
2.24%
2014
-15.83%
13.93%
2013
178.56%
21.94%
Required:
a) Compute the historical return and standard deviation for each company
b) Compute Coefficient of variation for both stocks
To solve (c-e), assume a portfolio of $60,000 invested in these two stocks: with $24,000 invested in
Google and $36,000 invested in Coca-Cola.
c) Compute the portfolio return earned in each year
Transcribed Image Text:1. Following are recent returns on Google and on Coca-Cola. Year Google Coca-Cola 2017 121.67% 29.27% 2016 -16.31% 26.35% 2015 6.46% 2.24% 2014 -15.83% 13.93% 2013 178.56% 21.94% Required: a) Compute the historical return and standard deviation for each company b) Compute Coefficient of variation for both stocks To solve (c-e), assume a portfolio of $60,000 invested in these two stocks: with $24,000 invested in Google and $36,000 invested in Coca-Cola. c) Compute the portfolio return earned in each year
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