7. Problem 6-13 (Historical Realized Rates of Return) Historical Realized Rates of Return You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical return a. Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places. Stock A: % Stock B: % b. Suppose you had held a portfolio consisting of 50% of 5 tock 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? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign. c. Calculate the standard deviation of returns for each stock and for the portfolio. Do not round intermediate calculations. Round your answers to two decimal places. d. Suppose you are a risk-averse Investor. Assuming Stocks A and B are your only cholces, would you prefer to hold Stock A, Stock B, or the portfollo? Why? A risk-averse investor should choose , since it offers expected return with risk