Stocks A and B have the following historical returns:
Year |
Stock A's Returns, rA |
Stock B's Returns, rB |
2011 |
- 21.60% |
- 15.00% |
2012 |
24.00 |
23.50 |
2013 |
16.50 |
33.90 |
2014 |
- 1.50 |
- 7.70 |
2015 |
26.50 |
9.20 |
- Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to two decimal places.
%
- 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. Enter a negative answer with a minus sign.
Year |
Portfolio |
2011 |
% |
2012 |
|
2013 |
|
2014 |
|
2015 |
|
What would the average return on the portfolio have been during
this period? Round your answer to two decimal places.
%
- 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 |
% |
% |
% |
- 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 |
|
|
|
- Assuming you are a risk-averse