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Stocks A and B have the following historical returms: Year Stock A's Returns, rA 2011 2012 2013 2014 2015 a. Calculate the average rate of
Stocks A and B have the following historical returms: Year Stock A's Returns, rA 2011 2012 2013 2014 2015 a. Calculate the average rate of return for stock A during the period 2011 through 2015. Round your answer to two decimal places Stock B's Returns, rB -17.50% 31.25 14.25 2.25 27.25 15.40% 20.80 30.30 5.30 22.60 Calculate the average rate of return for stock B during the period 2011 through 2015. Round your answer to two decimal places b. Assume that someone held a portfolio con sting or 5 % 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. 2011 2012 2013 2014 2015 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. c. 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 Standard Deviation d. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock E Portfolio CV you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? Select
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