A. Compute for EGDL Corporation's Standard Deviation. B. Compute for JSS Corporation's Standard Deviation. C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on his portfolio? D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse individual?
A. Compute for EGDL Corporation's Standard Deviation. B. Compute for JSS Corporation's Standard Deviation. C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on his portfolio? D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse individual?
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...
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![Instruction: Satisfy what is being required and show complete solution on your submitted output.
Listed below are the historical returns of both investment for the past five years
Year
EGDL Corp JSS Corp
1
8.00%
5.32%
12.11
8.23
9.65
-5.23
4
-2.34
-7.45
7.84
3.27
A. Compute for EGDL Corporation's Standard Deviation.
B. Compute for JSS Corporation's Standard Deviation.
C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on
his portfolio?
D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse
individual?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7069985f-5918-4d91-b083-eb6a9a1ef77d%2Fb90e635e-681a-4daa-a389-372138d4aa50%2F34vrcgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instruction: Satisfy what is being required and show complete solution on your submitted output.
Listed below are the historical returns of both investment for the past five years
Year
EGDL Corp JSS Corp
1
8.00%
5.32%
12.11
8.23
9.65
-5.23
4
-2.34
-7.45
7.84
3.27
A. Compute for EGDL Corporation's Standard Deviation.
B. Compute for JSS Corporation's Standard Deviation.
C. What is the Portfolios Standard Deviation assuming that the investor decides to have equal proportion on both EGDL and JSS on
his portfolio?
D. Using the result of your computation in A, B, and C, which would you recommend assuming that the investor is a risk averse
individual?
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