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Stocks A and B have the following historical returns: Year Stock A's Returns, r A Stock B's Returns, r B 2013 - 16.20% - 16.30%

Stocks A and B have the following historical returns:

Year Stock A's Returns, rA Stock B's Returns, rB
2013 - 16.20% - 16.30%
2014 37.50 29.90
2015 16.00 29.10
2016 - 5.25 - 7.60
2017 22.25 19.20
  1. Calculate the average rate of return for stock A during the period 2013 through 2017. Round your answer to two decimal places. % Calculate the average rate of return for stock B during the period 2013 through 2017. Round your answer to two decimal places. %
  2. Assume that someone held a portfolio consisting of 50% 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. Negative values should be indicated by a minus sign.
    Year Portfolio
    2013 %
    2014
    2015
    2016
    2017
    What would the average return on the portfolio have been during this period? Round your answer to two decimal places. %
  3. 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 % % %
  4. 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
  5. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?

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