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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 2016 -15.80 % -15.60 %
Stocks A and B have the following historical returns:
Year | Stock A's Returns, rA | Stock B's Returns, rB | ||
2016 | -15.80 | % | -15.60 | % |
2017 | 28.00 | 15.20 | ||
2018 | 14.75 | 35.40 | ||
2019 | -5.50 | -6.00 | ||
2020 | 33.50 | 25.95 |
- 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: %
- 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.
%
- 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 % % % - 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 - Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?
-Select-Stock AStock BPortfolio
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