Stocks A and B have the following historical returns:Year20162017201820192020Stock A's Returns, ra(15.40%)29.0014.25(5.00)26.00Stock B's Returns, ra(15.80%)21.1037.30(6.20)12.45a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:Stock B: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 yearRound your answers to two decimal places. Negative values should be indicated by a minus sign.PortfolioCVYear20162017201820192020What would the average return on the portfolio have been during this period? Round your answer to two decimal places.%%%c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Stock AStock BPortfolioStandard Deviationd. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.Stock AStock BPortfolioe. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?-Select B

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the following hist Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (15.40%) 29.00 14.25 (5.00) 26.00 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: CV Stock B's Returns, re (15.80%) 21.10 Stock B: 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 Round your answers to two decimal places. Negative values should be indicated by a minus sign. Portfolio 37.30 (6.20) 12.45 Year 2016 2017 2018 2019 2020 Stock A % % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % % c. 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 d. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places. Stock B Portfolio e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? -Swich B

the following hist Year 2016 2017 2018 2019 2020 Stock A's Returns, ra (15.40%) 29.00 14.25 (5.00) 26.00 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: CV Stock B's Returns, re (15.80%) 21.10 Stock B: 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 Round your answers to two decimal places. Negative values should be indicated by a minus sign. Portfolio 37.30 (6.20) 12.45 Year 2016 2017 2018 2019 2020 Stock A % % What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % % c. 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 d. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places. Stock B Portfolio e. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? -Swich B

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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Stocks A and B have the following historical returns:YearStock A's Returns, raStock B's Returns, ra2016(18.60%)(14.50%)201734.2520.40201814.7539.902019(1.00)(9.70)202026.7520.05a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:11.23%Stock B:11.23%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.YearPortfolio2016-16.55%201727.33201827.33%2019-5.35202023.40What would the average return on the portfolio have been during this period? Round your answer to two decimal places.11.23c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Stock AStock BPortfolioStandard Deviationd. Calculate the coefficient of variation for each…
Stocks A and B have the following historical returns: Year 2016 2017 2018 39.90 2019 (9.70) 2020 20.05 a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A: 11.23 % Stock B: 11.23 % 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. Portfolio Stock A's Returns, ra (18.60%) 34.25 14.75 (1.00) 26.75 CV Stock A Year 2016 Ⓡ 2017 % 2018 2019 2020 -16.55 27.33 Stock B's Returns, ra (14.50% ) 20.40 27.33 › › -5.35 23.40 What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % % 11.23 c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock B Stock A Portfolio %…
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