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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 |
- 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: %
- 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.
%
- 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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