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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, Stocks A and B have the following historical returns: Year 2011 2012 2013 2014 2015 a. Calculate the average rate of return for each stock during the 5-year period. Round your answers to two decimal places. 22.40% 38.75 11.50 2.25 22.50 16.70% 24.80 35.00 13.70 18.70 Stock A 9.60 Stock B 9.62 b, 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? Round your answers to two decimal places. Year 2011 Portfolio 19.55 % 2012 2013 2014 31.78 23.25 % 7.975 2015 20.6 Average return 9.62 c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Enter negative returns with a minus sign. TA rB Portfolio Std. Dev 54.6

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