Your portfolio had the values in the following table for the four years listed: a. Calculate your return for each year over the 4-year period. Then calculate the average return over the 4-year period. b. Calculate the portfolio standard deviation. The return for 2016 is%. (Round to two decimal places.) The return for 2017 is %. (Round to two decimal places.) The return for 2018 is %. (Round to two decimal places.) The return for 2019 is%. (Round to two decimal places.) The average return is %. (Round to two decimal places.) The standard deviation is %. (Round to two decimal places.) Data table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) 2016 2017 2018 2019 Beginning Value $60,617 55,826 64,271 68,967 - Ending Value $55,826 64,271 68,967 69,965 X
Your portfolio had the values in the following table for the four years listed: a. Calculate your return for each year over the 4-year period. Then calculate the average return over the 4-year period. b. Calculate the portfolio standard deviation. The return for 2016 is%. (Round to two decimal places.) The return for 2017 is %. (Round to two decimal places.) The return for 2018 is %. (Round to two decimal places.) The return for 2019 is%. (Round to two decimal places.) The average return is %. (Round to two decimal places.) The standard deviation is %. (Round to two decimal places.) Data table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) 2016 2017 2018 2019 Beginning Value $60,617 55,826 64,271 68,967 - Ending Value $55,826 64,271 68,967 69,965 X
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
Section: Chapter Questions
Problem 1PS
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CH5 qz 1
![**Portfolio Performance Analysis**
Your portfolio had the values in the following table for the four years listed:
a. Calculate your return for each year over the 4-year period. Then calculate the average return over the 4-year period.
b. Calculate the portfolio standard deviation.
| Year | Beginning Value | Ending Value |
|------|-----------------|--------------|
| 2016 | $60,617 | $55,826 |
| 2017 | $55,826 | $64,271 |
| 2018 | $64,271 | $68,967 |
| 2019 | $68,967 | $69,965 |
**Instructions for Calculations:**
- **The return for 2016 is:** [____]% (Round to two decimal places.)
- **The return for 2017 is:** [____]% (Round to two decimal places.)
- **The return for 2018 is:** [____]% (Round to two decimal places.)
- **The return for 2019 is:** [____]% (Round to two decimal places.)
- **The average return is:** [____]% (Round to two decimal places.)
- **The standard deviation is:** [____]% (Round to two decimal places.)
**Data Table Explanation:**
The table shows the beginning and ending values for each year from 2016 to 2019. To calculate the return for each year, use the formula:
\[ \text{Return} = \left( \frac{\text{Ending Value} - \text{Beginning Value}}{\text{Beginning Value}} \right) \times 100\% \]
**Additional Notes:**
- The average return is the mean of the annual returns.
- The standard deviation measures the amount of variation or dispersion of the returns from the average return.
Click on the provided icon to copy the contents of the data table into a spreadsheet for further analysis.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04b75ea7-69f8-44f3-a33a-ba23330f1240%2F4abf7a91-be7e-451b-93d7-aa0e429d3ea0%2F8675orb_processed.png&w=3840&q=75)
Transcribed Image Text:**Portfolio Performance Analysis**
Your portfolio had the values in the following table for the four years listed:
a. Calculate your return for each year over the 4-year period. Then calculate the average return over the 4-year period.
b. Calculate the portfolio standard deviation.
| Year | Beginning Value | Ending Value |
|------|-----------------|--------------|
| 2016 | $60,617 | $55,826 |
| 2017 | $55,826 | $64,271 |
| 2018 | $64,271 | $68,967 |
| 2019 | $68,967 | $69,965 |
**Instructions for Calculations:**
- **The return for 2016 is:** [____]% (Round to two decimal places.)
- **The return for 2017 is:** [____]% (Round to two decimal places.)
- **The return for 2018 is:** [____]% (Round to two decimal places.)
- **The return for 2019 is:** [____]% (Round to two decimal places.)
- **The average return is:** [____]% (Round to two decimal places.)
- **The standard deviation is:** [____]% (Round to two decimal places.)
**Data Table Explanation:**
The table shows the beginning and ending values for each year from 2016 to 2019. To calculate the return for each year, use the formula:
\[ \text{Return} = \left( \frac{\text{Ending Value} - \text{Beginning Value}}{\text{Beginning Value}} \right) \times 100\% \]
**Additional Notes:**
- The average return is the mean of the annual returns.
- The standard deviation measures the amount of variation or dispersion of the returns from the average return.
Click on the provided icon to copy the contents of the data table into a spreadsheet for further analysis.
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