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Stocks A and B have the following historical returns: Year Stock A's Returns, r A Stock B's Returns, r B 2014 (16.20 %) (13.00 %)
Stocks A and B have the following historical returns:
Year | Stock A's Returns, rA | Stock B's Returns, rB | ||
2014 | (16.20 | %) | (13.00 | %) |
2015 | 33.50 | 24.10 | ||
2016 | 15.00 | 30.90 | ||
2017 | (1.75 | ) | (9.60 | ) |
2018 | 27.25 | 25.40 |
- 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?
-Select-Stock AStock BPortfolioItem 15
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