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Risk and Rates of Return ( 30 points: 6 items 5 points) Read and analyze each given scenario and provide what is asked. Show your

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Risk and Rates of Return ( 30 points: 6 items 5 points) Read and analyze each given scenario and provide what is asked. Show your complete solutions. Realized Rates of Returns: Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the period 215 through 219. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year from 215 through 219 ? What would have been the average return on the portfolio during that period? b. Calculate the standard deviation of returns for each stock. c. Assume the risk-free rate during this time was 3.5%. What are the Sharpe ratios for Stocks A and B over this time period using their average returns

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