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REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2011 - 19.30%
REALIZED RATES OF RETURN Stocks A and B have the following historical returns:
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. % 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.
Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? -Select-Stock AStock BPortfolioItem 15 |
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