Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Sto
ID: 2684566 • Letter: A
Question
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 answers to two decimal places. What would the average return on the portfolio have been during this period? Round your answer to two decimal places. % Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. Stock A Stock B Portfolio Std. Dev. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places. Stocks A and B have the following historical returns: Calculate the average rate of return for stock A during the period 2006 through 2010. Round your answer to two decimal places. % Calculate the average rate of return for stock B during the period 2006 through 2010. Round your answer to two decimal places.Explanation / Answer
a. Average return of stock A= 10.72% Average return of stock B= 10.72% b. 2006= -17.4% 2007= 28.75% 2008= -7.1% 2009= 24.575% averege return of portfolio= 10.72% c. SD of A= 20.388% DS of B= 21.736% SD of portifolio=19.35% d. coeff of variation= SD/meanx100 A= 190.186% B= 197.51% Portfolio= 180.50%