Calculate the Expected Return, Variance, and Standard Deviation for the Following

question 20

Essay

Calculate the expected return, variance, and standard deviation for the following portfolio of four stocks:
$$\begin{array} { | c | c | } \hline \text { Stock 1 } & 16.4 \% \text { retum } \\\hline \text { Stock 2 } & - 9.2 \% \text { retum } \\\hline \text { Stock 3 } & 7.9 \% \text { retum } \\\hline \text { Stock 4 } & 22.0 \% \text { retum } \\\hline\end{array}$$

---

Definitions:

Operating Costs

Expenses associated with running a business's core operations on a daily basis, excluding the cost of goods sold.

Net Operating Working Capital

Net operating working capital is a financial measure that represents the difference between operating current assets and operating current liabilities.

Tax Liability

The total amount of tax that an individual or a corporate entity owes to a tax authority.

Capital Gains

Capital gains are the profit earned from the sale of an asset, such as stocks, bonds, or real estate, which exceeds the purchase price.