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You are consldering an investment in elther individual stecks or a portfollo of stocks. The two atocks you are researching. 5 tock A and Stock

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You are consldering an investment in elther individual stecks or a portfollo of stocks. The two atocks you are researching. 5 tock A and Stock B, have the following historical retums: a. Calculate the average rate of return for each stock during the 5 -year period. Do not round intermediate calculatiens, Round your answen to two decitial places - stachA: Stock B: b. Suppose you had held a portfollo consisting of 50% of 5 tock A and 50% of 5 tock B. What would have been the resiliad rate of return an the partfalig in each year? What would have been the overage return on the portfollo during thls period? Do not round intermediste calculationt, Pound your antiwers to two decimal places. Negative values, if any should be indicated by a minus sign. C. Calculate the standard deviation of returns for each stock and for the portfolio. Do not round intermediate calcuilations. Round your answers ta tho decimal places. d. Suppose you ace a risk-bverse investor, Assuming Stocks A and B are your only choices, would you prefer to hold 5 tock. A, Stock B. or the portiolia? Why? A risk-averse investor should choose since it offers

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