problem 6.13 or 6.14 solve the both problems problem one have 4 parts and problem two have 3 parts try to solve it compete

(6-13) Historical Realized Rates of Retur 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 TA -20.00% 2009 -5.00% 2010 42.00 15.00 2011 -13.00 20.00 -8.00 50.00 2012 2013 25.00 12.00 Part 3 Stocks and Options a. Calculate the average rate of return for each stock during the 5-year period. 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? c. Calculate the standard deviation of returns for each stock and for the portfolio. d. If you are a risk-averse investor, then, assuming these are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? Why? You have observed the following returns over time: Historical Returns Expected and Required Rates of Retum Year Stock X Stock Y Market 2009 14% 13% 12% 2010 19 7 10 2011 -16 -5 -12 2012 3 1 1 2013 20 11 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. a. What are the betas of Stocks X and Y? b. What are the required rates of return on Stocks X and Y? c. What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y