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eBook Stocks A and B have the following historical returns: Year Stock A's Returns, r A Stock B's Returns, r B 2016 (19.40 %) (16.50

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Stocks A and B have the following historical returns:

Year Stock A's Returns, rA Stock B's Returns, rB
2016 (19.40 %) (16.50 %)
2017 30.75 19.10
2018 13.00 34.60
2019 (6.00 ) (10.30 )
2020 28.75 20.20
Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.

Stock A: %

Stock B: %

Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign.

Year Portfolio
2016 %
2017 %
2018 %
2019 %
2020 %

What would the average return on the portfolio have been during this period? Round your answer to two decimal places.

%

Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.

Stock A Stock B Portfolio
Standard Deviation % % %

Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.

Stock A Stock B Portfolio
CV

Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?

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