Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2012 -17.50% -12.70% 2013 23.25 18.40 2014 17.00 31.90 2015 -2.75 -8.30 2016 33.75 24.45 a. Calculate the average rate of return for each stock

image text in transcribed
2012 -17.50% -12.70% 2013 23.25 18.40 2014 17.00 31.90 2015 -2.75 -8.30 2016 33.75 24.45 a. Calculate the average rate of return for each stock during the 5-year period. Round your answers to two decimal places. Stock A 10.75 9% Stock B 10.75 9% b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Round your answers to two decimal places. Year Portfolio 2012 -15.1 9% 2013 20.83 9% 2014 24.45 9% 2015 -5.53 9% 2016 29_1 @% Average return 10.75 9% c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. rA r3 Portfolio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Mathematics For Business Economics, Life Sciences, And Social Sciences

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

14th Edition

0134674146, 978-0134674148

More Books

Students also viewed these Finance questions

Question

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago