The Historical Returns for the Past Three Years for Stock

Multiple Choice

The historical returns for the past three years for Stock B and the stock market portfolio are Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent. Calculate the average return for Stock B and the market portfolio.

A) Stock B: 16 percent; market portfolio: 14 percent
B) Stock B: 14 percent; market portfolio: 16 percent
C) Stock B: 24 percent; market portfolio: 12 percent
D) Stock B: 12 percent; market portfolio: 16 percent