Question
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (21.90 %) (13.50 %) 2015 31.00
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (21.90 %) (13.50 %) 2015 31.00 16.70 2016 14.75 24.60 2017 (3.25 ) (11.50 ) 2018 30.50 34.80 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: % 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. % 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?
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