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Average rate of return on the portfolio during given period


Assignment:

Year    Stock A's Returns (rA)    Stock B's Returns (rB)
2000    -18%    14.5
2001     33        21.8
2002     15        30.5
2003    -0.5       -7.6
2004     27        26.3
 
Question 1. Calculate the average rate of return.

Question 2. Assume someone held a portfolio consisting of 50% of stock A and 50% stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average rate of return on the portfolio during that period?

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Finance Basics: Average rate of return on the portfolio during given period
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