Asset A and B have the following historical returns:

Year Asset A (%) Asset B (%)

2017 10.00 15.00

2018 -20.00 35.00

2019 40.00 -30.00

1. Calculate the average rate of return for each asset during the period 2017 through 2019.

2. Assume that someone held a portfolio consisting of 50% of Asset A and 50% of Asset B. What would the realized rate of return on the portfolio have been each year? What would the average return on the portfolio have been during this period?

3. Calculate the standard deviation of returns for each asset and for the portfolio.

4. Calculate the coefficient of variation for each asset and for the portfolio.

5. Would you prefer to hold Asset A, Asset B, or the portfolio? Why?