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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,

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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, Stock A and Stock B, have the following historical returns: a. Caloulate 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. steck A : Stock B : b. Suppose you had heid a portfobo consisting of 50% of stock A and sow of Stock 6 . What would have been the realized rate of return on the portfolio in each year? What woula have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal piaces. Negative. values, it any, should be indicated by a mimus sign. c. Colculate the standard deviation of returns for each stock and for the portfolio. Do not round intermediate caiculations. Round your answers to two decimal places. 0. Suppose you bre b risk.bverse investor. Assuming Stocks A and B are your only choices, would you prefer fo hold 5 tock A, Stock B, or the portfolio? Why? A risk-averte investor should choose , since it ofters expected retim with

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