Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2016 (23.80 %) (17.70 %) 2017 22.50   24.50   2018 14.25   24.00   2019 (2.25 ) (9.70 ) 2020 25.00   14.60   Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places. Stock A:  % Stock B:  %

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.2MBA
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Stocks A and B have the following historical returns:

Year Stock A's Returns, rA Stock B's Returns, rB
2016 (23.80 %) (17.70 %)
2017 22.50   24.50  
2018 14.25   24.00  
2019 (2.25 ) (9.70 )
2020 25.00   14.60  
  1. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.

    Stock A:  %

    Stock B:  %

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