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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 - 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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