Question: Answer correctly and I will upvote S-HW#3 0 Problem 6-13 5. 0 Historical Realized Rates of Return 0 Stocks A and B have the following

Answer correctly and I will upvote

S-HW#3 0 Problem 6-13 5. 0 Historical Realized Rates of Return 0 Stocks A and B have the following historical returns: 6. 7_ . Year FA 715 I 8. 2012 -17.40/a -16.20/a 9_ 2013 30.25 29.90 10' 2014 12.00 37.90 11, 2015 4.00 6.90 12, 2016 24.00 0.15 13, a. Calculate the average rate of return for each stock during the 5-year period. Round your answers to two decimal places. Stock A D/o 14. Stock B D/o 15. 16. b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Round your answers to two decimal places. 17' Year Portfolio 18' 2012 % 2013 % 2014 % 2015 % 2016 % Average return % (2. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. rA r3 Portfolio Std. Dev. % /o % d. If you are a risk-averse investor then, assuming these are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? -Select- V

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