Stocks A and B have the following historical returns:

Year Stock A$\text{'}$s Returns, rA Stock B$\text{'}$s Returns, rB

$2016(24\mathrm{.}60\%)(16\mathrm{.}50\%)$

$201723\mathrm{.}7528\mathrm{.}40$

$201810\mathrm{.}5030\mathrm{.}00$

$2019(1\mathrm{.}50)(7\mathrm{.}20)$

$202033\mathrm{.}256\mathrm{.}70$

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$-$Stocks A and B have the following historical returns:

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: $,\%$

Stock B: $,\%$

by a minus sign.

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.

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 Portfolio

CV

e$.$ Assuming you are a risk$-$averse investor, would you prefer to hold Stock A$,$ Stock B$,$ or the portfolio?