You are analyzing two stocks (stock X and Stock Y) that have the following historical returns:

Year Stock X Stock Y

2017 (16.00) (14.00)

2018 32.00 22.75

2019 15.50 31.45

2020 (2.00) (9.40)

2021 29.00 28.25

a. Calculate the average rate of return for each stock during the 5-year period. b. Assume that someone held a portfolio consisting of 50% of Stock X and 50% of Stock Y. 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? c. Calculate the standard deviation of returns for each stock and for the portfolio. d. Calculate the coefficient of variation for each stock and for the portfolio. e. If you were a risk averse investor, would you prefer to hold Stock X, Stock Y or the portfolio? Why?