Question
please show calculations***** 1. a) Stocks A and B have the following historical returns: (ANSWERED) Year Stock A return Stock B Return 2014 (20.80%) (17.30%)
please show calculations*****
1. a) Stocks A and B have the following historical returns: (ANSWERED)
Year | Stock A return | Stock B Return |
2014 | (20.80%) | (17.30%) |
2015 | 36.25 | 17.20 |
2016 | 18.75 | 32.30 |
2017 | (3.50) | (11.00) |
2018 | 26.50 | 36.00 |
Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. (ANSWERED)
Stock A: 11.44%
Stock B: 11.44%
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. (ANSWERED)
Year - Portfolio (%)
2014 - -19.05%
2015 - 26.73%
2016 - 25.53%
2017 - -7.25%
2018 - 31.25%
c) What would the average return on the portfolio have been during this period? Round your answer to two decimal places. (ANSWERED)
11.44 %
d) 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: _____%
e) Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.
CV
Stock A: ____%
Stock B: ____%
Portfolio: ____%
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