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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 2014 (16.70 %) (14.10 %)

Stocks A and B have the following historical returns:

Year Stock A's Returns, rA Stock B's Returns, rB
2014 (16.70 %) (14.10 %)
2015 35.75 16.70
2016 11.50 22.20
2017 (5.75 ) (11.90 )
2018 29.75 41.65
  1. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places.

    Stock A: %

    Stock B: %

  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
    2014 %
    2015 %
    2016 %
    2017 %
    2018 %

    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?

    -Select-Stock AStock BPortfolioItem 15

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