Stock A:

Stock B:

$\%$

b$.$ Suppose you had 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? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to

two decimal places. Negative values, if any, should be indicated by a minus sign.

c$.$ Calculate the standard deviation of returns for each stock and for the portfolio. Do not round intermediate calculations. Round your answers to two decimal

places.

d$.$ Suppose you are a risk$-$averse investor. Assuming Stocks A and B are your only choices, would you prefer to hold Stock A$,$ Stock B$,$ or the portfolio? Why?

A risk$-$averse investor should choose

$,$ since it offers

expected return with

risk.