Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rA   2014 (19.00 (14.70 %) 2015 34.75 19.50   2016 13.75 30.90   2017 (4.25 (9.30 ) 2018 34.25 33.10   Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % 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 2014   % 2015   % 2016   % 2017   % 2018   %   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  %  %  %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Stocks A and B have the following historical returns:

Year Stock A's Returns, rA Stock B's Returns, rA  
2014 (19.00 (14.70 %)
2015 34.75 19.50  
2016 13.75 30.90  
2017 (4.25 (9.30 )
2018 34.25 33.10  
  1. Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places.

    Stock A:   %

    Stock B:   %

  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
    2014   %
    2015   %
    2016   %
    2017   %
    2018   %

     

    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  %  %  %
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