Question
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 - 23.50%
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 | - 23.50% | - 15.80% |
2012 | 36.25 | 26.70 |
2013 | 10.50 | 36.30 |
2014 | - 1.25 | - 12.30 |
2015 | 28.75 | 15.85 |
Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places. % 10.15 Calculate the average rate of return for stock B during the period 2011 through 2015. Round your answer to two decimal places. % 10.15
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.
Year | Portfolio |
2011 | % -19.65 |
2012 | % 31.48 |
2013 | % 23.40 |
2014 | % -6.78 |
2015 | % 22.30 |
What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % 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 | |
Std. Dev. |
Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.
Stock A | Stock B | Portfolio | |
Coef. Var. |
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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