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Stocks A and B have the following historical returns: Year 2012 -16.50% -17.60% 2013 39.25 20.40 2014 12.75 23.50 2015 -3.50 -15.00 2016 26.00 46.70

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Stocks A and B have the following historical returns: Year 2012 -16.50% -17.60% 2013 39.25 20.40 2014 12.75 23.50 2015 -3.50 -15.00 2016 26.00 46.70 a. Calculate the average rate of return for each stock during the 5-year period. Round your answers to two decimal places. Stock A % Stock B % b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Round your answers to two decimal places. Year Portfolio 2012 % 2013 % 2014 % 2015 % 2016 % Average return % c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. rB Portfolio Std. Dev. % % %

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