What is the relationship between the arithmetic average and the geometric average return for each stock and the S&P 500? Explain.
Compare the standard deviations for each of the 4 stocks to the standard deviations of the 2 combined portfolios and to the S&P 500. What is the impact of diversification on the standard deviation of returns?
Look at your sub-period analysis. How are risks and average returns different for the 4 stocks across the sub-periods? Describe the similarities and differences. Why might the 2nd and 4th sub-periods be different from the other 3? Explain briefly. How does this affect your view of interpreting the past data as representative of what might happen in the future? Explain.