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Stocks A and B have the following historical returns: Year Stock A's Returns, TA Stock B's Returns, rB 2016 (19.80%) (12.80%) 2017 23.25 25.50 2018
Stocks A and B have the following historical returns: Year Stock A's Returns, TA Stock B's Returns, rB 2016 (19.80%) (12.80%) 2017 23.25 25.50 2018 10.75 35.70 2019 (5.25) (8.10) 2020 31.25 -0.10 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: : 18.06 % Stock B: 16.4 % % b. 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 2016 % 2017 % 2018 2019 2020 % % % 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 B B Portfolio CV e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? a -, , ? -Select
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