STOCK “A" RETURNS (10%) 18.5% 38.67% 14.33% 33.00% STOCK “B" RTEURNS (3%) 21.29% YEAR 2005 2006 2007 2008 2009 44.25% 13.67% 28.30% Calculate the average rate of return for each stock during the period 2005-2009. (i) (ii) You hold a portfolio of 50% A and 50% B. What is the rate of return for each vear between 2005 and 2009? (iii) What would have been the average return for the portfolio for the period 2005-2009?
STOCK “A" RETURNS (10%) 18.5% 38.67% 14.33% 33.00% STOCK “B" RTEURNS (3%) 21.29% YEAR 2005 2006 2007 2008 2009 44.25% 13.67% 28.30% Calculate the average rate of return for each stock during the period 2005-2009. (i) (ii) You hold a portfolio of 50% A and 50% B. What is the rate of return for each vear between 2005 and 2009? (iii) What would have been the average return for the portfolio for the period 2005-2009?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:YEAR
2005
STOCK “A" RETURNS
(10%)
STOCK “B" RTEURNS
(3%)
21.29%
2006
18.5%
2007
38.67%
44.25%
2008
2009
14.33%
13.67%
33.00%
28.30%
(i) Calculate the average rate of return for each stock during the period 2005-2009.
(ii) You hold a portfolio of 50% A and 50% B. What is the rate of return for each vear
between 2005 and 2009?
(iii) What would have been the average return for the portfolio for the period 2005-2009?
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