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You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B have the following historical returns:
Year stock a stock b
Calculate the average rate of return for each stock during the year period. Do not round intermediate calculations. Round your answers to two decimal places.
Stock A:
Stock B:
Suppose you had held a portfolio consisting of of Stock A and 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? Do not round intermediate calculations. Please round your answers to two decimal places.
Year Portfolio
Average return
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