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REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns, rs Stock A's Returns, rA Year - 13.50 %

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REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Stock B's Returns, rs Stock A's Returns, rA Year - 13.50 % -15.00% 2011 19.60 31.75 2012 32.10 12.00 2013 -10.80 -4.00 2014 24.85 27.50 2015 a. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. % Calculate the average rate of return for stock B during the period 2011 through 2015. Round your answer to two decimal places. 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. Enter a negative answer with a minus sign. Portfolio Year % 2011 2012 2013 2014 2015 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. c. Calculate the standard dviation of returns for each stock and for the portfolio. Round your answers to two decimal places Stock A Stock B Portfollo Standard Deviation % % % d. Calculate the coefficient of variation for each stock and for the portfollo. Round your answers to two decimal places. Stock A Stock B Portfolio CV e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? -Select- Check My Work (3 remaining)

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