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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 2016 through 2020
Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the period 2016 through 2020 . Round your answers to two decimal places. Stock A: % Stock B: % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of returr on the portfolio have been each year? Round your answers to two decimal places. 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. % Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio
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