Question

Stocks A and B have the following historical returns:

Year	Stock A's Returns, rA	Stock B's Returns, rB
2013	- 23.90%	- 16.20%
2014	30.75	15.00
2015	15.25	20.90
2016	- 1.00	- 9.10
2017	31.50	42.00

1. Calculate the average rate of return for stock A during the period 2013 through 2017. Round your answer to two decimal places.
   _______ %
   
   Calculate the average rate of return for stock B during the period 2013 through 2017. Round your answer to two decimal places.
   _____%
   
2. 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
   2013	%
   2014
   2015
   2016
   2017

   
   
   What would the average return on the portfolio have been during this period? Round your answer to two decimal places.
   ____ %
   
3. 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	%	%	%

4. 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

5. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?
   -Select-
   1. Stock A
   2. Stock B
   3. Portfolio

Answer 1