Problem 8-06

You expect to invest your funds equally in four stocks with the following expected returns:

Stock Expected Return A 18 % B 13 C 16 D 9 At the end of the year, each stock had the following realized returns:

Stock Realized Return A -2 % B 30 C 3 D -3 Compare the portfolios expected and realized returns. Round your answers to two decimal places.

Expected return: %

Realized return: %