Note: Do not use MicroSoft Excel or spredsheet. Explain the steps and formula for each.

Stocks N and R have the following historical returns:

Year	Stock N	Stock R
2010	-18%	-11 %
2011	24%	29 %
2012	12%	44 %
2013	-5%	-7 %
2014	16%	23 %

1. Calculate the average rate of return for each stock during the 5-year period.

2. Assume that you are planning to hold a portfolio consisting of 35% of Stock N and 65% of Stock R. What is the realized rate of return on the portfolio in each year?

3. What is the average return on the portfolio for the 5 year period?

4. What is the standard deviation of returns for each stock and for the portfolio?

5. Calculate the coefficient of variation for each stock and for the portfolio?