Question

The following equally likely outcomes have been estimated for the returns on Portfolio G and Portfolio...

The following equally likely outcomes have been estimated for the returns on Portfolio G and Portfolio H:                                                                    
                        Scenario          Portfolio G       Portfolio H                              
                        1                      5.0%                9.0%                           
                        2                      3.0%                -7.0%                          
                        3                      9.0%                15.0%                         
                        4                      9.0%                -4.0%              

Calculate the variances of the rate of return for the two portfolios. Round your answer to the nearest tenth of a percent.

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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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