Stocks A and B have the following historicalreturns:YearTA2009-17.30%-15.10%201038.7524.70201118.5038,602012-2.25-7.20201331.7528.45Calculate the average rate of return for eachstock during the past 5-year period of time.Stock AStock BAssume that someone held a portfolioconsisting of 50% of Stock A and 50% of StockB. What would have been the realized rate ofreturn on the portfolio in each year? Whatwould have been the average return on theportfolio during this period?2009:2010:2011:2012:2013:Average return:Calculate the standard deviation of returns foreach stock and the portfolioStock A std dev:Stock B std dev:Portfolio std dev:

The question is based on the concept of Portfolio Management.

Stocks A and B have the following historical returns: Year PA 2009 -17.30% -15.10% 2010 36.75 24.70 2011 18.50 38.60 2012 -2.25 -7.20 2013 31.75 28.45 Calculate the average rate of return for each stock during the past 5-year period of time.

Stocks A and B have the following historical returns: Year PA 2009 -17.30% -15.10% 2010 36.75 24.70 2011 18.50 38.60 2012 -2.25 -7.20 2013 31.75 28.45 Calculate the average rate of return for each stock during the past 5-year period of time.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 8P: A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per...

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