The following table gives prices and dividend payments of the shares of companies A and B. Over the same period 3-month Canadian T-Bills have an average return of 4.5%. Write rates and returns as a percentage and round your answers at two decimals.

date	Price A ($)	Dividend A $	Price B $	Dividend B $
Dec 31, 2018	12.5		20.35
June 30, 2019	14.65	0.25	19.85	1.25
Dec 31, 2019	12.5	0.15	18.75	1.25

a. (5) Calculate the annualized returns for each stock for 2019.

b. (2) What is the dividend yield for each stock on June 30, 2019?

c. (2) Suppose you have a portfolio with stocks from only these two companies. The portfolio has an annual return of 18.11%. How much is the excess return on your portfolio?

d. (4) Assume that the annualized return of stock A is 14.6% and the annualized return of stock B is 19.1% (those are not the answers to question 4a). What are the portfolio weights of the two companies?

e. (2) Why would you hold both stocks in your portfolio (and not just the one with the highest return)? Explain.