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Stocks A and B have the following historical returns: a . Calculate the average rate of return for each stock during the period 2 0
Stocks A and B have the following historical returns:
a Calculate the average rate of return for each stock during the period through Round your answers to two decimal places.
Stock A:
Stock B:
Negative values should be indicated by a minus sign.
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.
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 B
Portfolio
CV
e Assuming you are a riskaverse investor, would you prefer to hold Stock A Stock B or the portfolio?
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