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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,

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 returns:

  1. Year2015-15.00%-6.00%201633.0024.00201722.00-16.002018-5.0045.00201931.0019.00Calculate 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.
  2. Stock A:%
  3. Stock B:%
  4. Suppose you had 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? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.
  5. YearPortfolio2015%2016%2017%2018%2019%Average return%
  6. 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.
  7. PortfolioStd. Dev.%%%

  1. image text in transcribed
Historical Realized Rates of Return You are oon54den'ng an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stool-c A and Stock B, have the following historical returns: Year rA :3 2015 -15.00% -6. 00% 2016 33.00 24.00 2017 22.00 -16.00 2018 -5.00 45.00 2019 31.00 19.00 a. Calculate the average rate of return for each stock during the 5year period. Do not round intermediate calculations. Round your answers to two decimal places. Stock A: 0 % Stock B: a % b. Suppose you had held a portfolio consisting of 50% of StockA 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. Year Portfolio 2015 ' ' 0 % 2016 I 0 % 2o17 . I' 0 % 2o13 ' 0 % 2019 . 0 % Average return 0 % c. Calculate the standard dewation of returns for each stock and for the portfolio. [)0 not round intermediate calculations. Round your answers to two decimal places. U :3 Portfolio Std.Dev. ' 13%. 0%, '%

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