Question: please solve it step by step without excel 2. Stocks A and B have the following historical returns: Year Stock A's Returns, Stock B's Returns,
2. Stocks A and B have the following historical returns: Year Stock A's Returns, Stock B's Returns, r, 2013 (24.25%) 5.50% 2014 18.50 26.73 2015 38.67 48.25 2016 14.33 (4.50) 2017 39.13 43.86 a. Calculate the average rate of return for each stock during the period 2013 through 2017. 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 in each year from 2013 through 2017? What would the average return on the portfolio have been during that period? b. Calculate the standard deviation of returns for each stock and for the portfolio. Correlation coefficient between stocks is -0.8
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