Question
In: Finance
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2013 - 19.40% - 17.90% 2014 37.75 23.80 2015 15.25 35.70 2016 - 5.50 - 6.70 2017 26.25 19.45
A. Calculate the average rate of return for stock A during the period 2013 through 2017. Round your answer to two decimal places. %
Calculate the average rate of return for stock B during the period 2013 through 2017. Round your answer to two decimal places. %
B. 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 each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign.
Year Portfolio 2013 % 2014 2015 2016 2017
What would the average return on the portfolio have been during this period? Round your answer to two decimal places. %
C. 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 Standard Deviation % % %
D. Calculate the coefficient of variation for each stock and for the portfolio. Round your answers to two decimal places.
Stock A Stock B Portfolio CV
E. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio?
I think A. is 20.83 and 20.71 but I'm struggling to work out the remaining question, please help
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns,
rA
Stock B's Returns,
rB
2011
- 22.40%
- 15.60%
2012
27.75
19.70
2013
10.00
37.00
2014
- 5.00
- 9.90
2015
23.75
2.90
a. Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%_________
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns,
rA
Stock B's Returns,
rB
2014
(16.20
%)
(13.00
%)
2015
33.50
24.10
2016
15.00
30.90
2017
(1.75
)
(9.60
)
2018
27.25
25.40
Calculate the average rate of return for each stock during the
period 2014 through 2018. Round your answers to two decimal places.
Stock A: %
Stock B: %
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year Stock A's Returns, rA Stock B's Returns, rB
2014 (18.50 %) (13.50%)
2015 32.50 19.90
2016 16.75 25.50
2017 (5.00 ) (12.70 )
2018 27.50 34.05
a. Calculate the average rate of return for each stock during
the period 2014 through 2018. Round your answers to two decimal
places.
Stock A: % Stock B: %
b. Assume that someone held a portfolio consisting of 50% of
Stock A and 50%...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2013
- 23.10%
- 16.70%
2014
39.25
28.30
2015
16.50
37.90
2016
- 1.75
- 7.70
2017
26.25
15.35
a Calculate the average rate of return for stock A during the
period 2013 through 2017. Round your answer to two decimal
places.
Calculate the average rate of return for stock B
during the period 2013 through 2017. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2011
- 23.90%
- 12.00%
2012
24.75
27.40
2013
11.75
38.40
2014
- 1.25
- 6.50
2015
24.75
-11.20
Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%
Calculate the average rate of return for stock B during the period
2011 through 2015. Round your answer to two...
REALIZED RATES OF RETURN Stocks A and B have the following historical returns: Year Stock A's...
REALIZED RATES OF RETURN
Stocks A and B have the following historical returns:
Year
Stock A's Returns, rA
Stock B's Returns, rB
2011
- 15.90%
- 16.50%
2012
33.50
21.20
2013
11.25
31.60
2014
- 6.00
- 8.80
2015
34.00
29.35
Calculate the average rate of return for stock A during the
period 2011 through 2015. Round your answer to two decimal
places.
%
Calculate the average rate of return for stock B during the period
2011 through 2015. Round...
Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2012...
Historical Realized Rates of Return
Stocks A and B have the following historical returns:
Year
2012
-19.60%
-14.00%
2013
20.00
30.00
2014
12.00
35.30
2015
-1.00
-10.20
2016
31.50
1.80
Calculate the average rate of return for each stock during the
5-year period. Round your answers to two decimal places.
Stock A
%
Stock B
%
Assume that someone held a portfolio consisting of 50% of Stock
A and 50% of Stock B. What would have been the realized rate...
Year Stock A's Returns Stock B's Returns 2014 -18.0% -14.5% 2015 33.0% 21.8% 2016 15.0% 30.5%...
Year Stock A's Returns Stock B's Returns
2014 -18.0% -14.5%
2015 33.0% 21.8%
2016 15.0% 30.5%
2017 -0.50% -7.6%
2018 27.0% 26.3%
a) Calculate the average rate of return for each stock during
the period 2014 through 2018.
b) Assume that someone held a portfolio consisting of 50% of
Stock A and 50% of stock B. What would the average return on the
portfolio have been each year?
c) What would the average return on the portfolio have been
during...
You've collected the following historical rates of return for stocks A and B: Year (t) rA,t...
You've collected the following historical rates of return for
stocks A and B:
Year (t)
rA,t
rB,t
2016
0.02
0.02
2015
0.08
0.05
2014
0.12
0.07
Part 1: What was the average annual return for stock A=
0.0733
Part 2: What was the average annual return for
stock B?= 0.04667
Part 3: What was the standard deviation of
returns for stock A?
Part 4: What was the standard deviation of returns for stock
B?
Can you solve Part 3 and...
Stocks A and B have the following returns: Stock A Stock B 1 0.11 ...
Stocks A and B have the following returns:
Stock A
Stock B
1
0.11
0.06
2
0.06
0.04
3
0.15
0.04
4
0.03
0.01
5
0.07
-0.03
a. What are the expected returns of the two
stocks?
b. What are the standard deviations of the
returns of the two stocks?
c. If their correlation is 0.48, what is the
expected return and standard deviation of a portfolio of 56% stock
A and 44%...
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