Question
Stocks A and B have the following historical returns: Year Stock A's Returns, r A Stock B's Returns, r B 2016 (23.60 %) (15.40 %)
Stocks A and B have the following historical returns:
Year | Stock A's Returns, rA | Stock B's Returns, rB | ||
2016 | (23.60 | %) | (15.40 | %) |
2017 | 29.25 | 29.70 | ||
2018 | 17.25 | 33.10 | ||
2019 | (5.75 | ) | (8.30 | ) |
2020 | 22.75 | 0.80 |
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 BPortfolioItem 15
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