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Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2011 - 23.10% - 14.40% 2012 33.75
Stocks A and B have the following historical returns:
Year | Stock A's Returns, rA | Stock B's Returns, rB |
2011 | - 23.10% | - 14.40% |
2012 | 33.75 | 22.2 |
2013 | 20 | 22.6 |
2014 | -5.5 | -13.4 |
2015 | 33.25 | 41.4 |
a.
Average | 11.68% | 11.68% |
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
Year | Portfolio |
2011 | -18.75% |
2012 | 27.98 |
2013 | 21.3 |
2014 | -9.45 |
2015 | 37.33 |
c. Calculate the standard deviation of returns for each stock and for the portfolio. (Round to two decimal places)
Stock A | Stock B | Portfolio | |
Standard Deviation | ( ? )% | ( ? )% | ( ? )% |
d. Calculate the coefficient of variation for each stock and for the portfolio. (Round to two decimal places)
Stock A | Stock B | Portfolio | |
CV | ( ? )% | ( ? )% | ( ? )% |
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