Your company has decided to investment in the stock market. Management has tasked you to conduct...

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Finance

Your company has decided to investment in the stock market.Management has tasked you to conduct and assessment of the twostocks listed below
Year
Stock A Ra
Stock B Rb
2014
(18%)
(14,50%)
2015
33
21,8
2016
15
30,5
2017
(0,5)
(7,6)
2018
27
26,3
1.1 Calculate the average rate of return for each stock duringthe period 2014 through 2018.
1.2 Assume that someone held a portfolio consisting of 50% ofStock A and 50% of Stock B. What would the realised rate of returnon the portfolio have been each
year? What would the average return on the portfolio have beenduring this period?
1.3 Calculate the standard deviation of returns for each stockand for the portfolio.
1.4 Calculate the coefficient of variation for each stock andfor the portfolio.
1.5 Assuming you are a risk-averse investor, would you prefer tohold Stock A, Stock B, or the portfolio? Why?

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Your company has decided to investment in the stock market.Management has tasked you to conduct and assessment of the twostocks listed belowYearStock A RaStock B Rb2014(18%)(14,50%)20153321,820161530,52017(0,5)(7,6)20182726,31.1 Calculate the average rate of return for each stock duringthe period 2014 through 2018.1.2 Assume that someone held a portfolio consisting of 50% ofStock A and 50% of Stock B. What would the realised rate of returnon the portfolio have been eachyear? What would the average return on the portfolio have beenduring this period?1.3 Calculate the standard deviation of returns for each stockand for the portfolio.1.4 Calculate the coefficient of variation for each stock andfor the portfolio.1.5 Assuming you are a risk-averse investor, would you prefer tohold Stock A, Stock B, or the portfolio? Why?

Year	Stock A Ra	Stock B Rb
2014	(18%)	(14,50%)
2015	33	21,8
2016	15	30,5
2017	(0,5)	(7,6)
2018	27	26,3