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Image to Text: Stocks A and B have the following historical returns: Year Stock A's Returns, r A Stock B's Returns, r B 2014 (20.70

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Stocks A and B have the following historical returns:

Year Stock A's Returns, rA Stock B's Returns, rB
2014 (20.70 %) (13.90 %)
2015 33.75 16.80
2016 12.25 34.40
2017 (1.25 ) (7.40 )
2018 32.25 26.40
  1. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places.

Stock A: %

Stock B: %

  1. 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
2014 %
2015 %
2016 %
2017 %
2018 %

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

%

  1. 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 % % %

  1. 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

  1. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?
Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the period 2014 through 2018 . Round your answers to two decimal places. StockA:StockB:%% places. Negative values should be indicated by a minus sign. What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. d. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places. e. Assuminq you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio

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