Year 2003 Stock A Returns, rA 2004 (18.00%) 2005 2006 13.00 30.50 2007. 10.50) 27.00 26.30 Calculate the average rate of retum for each stock during the S-year period
D. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B What would have been the realized rate ofreturn on the portfolio in each year? What would have been the average return on the portfolio during this pertoo?
c. Calculate the standard deviation of retums for each stock and for the portfolto.
d. Calculate the coctricient of vanation for each stock and for the porttolto.
e. Il you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the porttolio?
Why?
1. If you decide to change the percentage owned in each stock, like 60% in Stock A, and 40% in stock B for example, or any other combinations or than 50-50, will your answer in part (e) above change? Why?

Year 2003 Stock A Returns rA 2004 1800 2005 2006 1300 3050 2007 1050 2700 2630 Calculate the average rate of retum for each stock during the Syear period D Assu class=


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