The table below shows the historical rates of return (including dividends) for two stocks: Year Stock A
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Question:
The table below shows the historical rates of return (including dividends) for two stocks:
Year | Stock A | Stock B |
---|---|---|
2022 | 8% | -3% |
2021 | 12% | 22% |
2020 | 8% | 20% |
2019 | 4% | -12% |
Stock A makes up 20% of the value of portfolio, and stock B makes up the rest. Calculate the portfolio return for each year. What was the average annual portfolio return over all years? Answer in 3+ decimals.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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