Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the average return on the portfolio during this period? Year rA rB 2009 - 30.00% -7.50% 2010 63.00% 22.50% 2011 30.00% -19.50% 2012 -12.00% 75.00% 2013 37.50% 18.00% Solution Year Return A Return B 50% of Return A 50% of return B Total return on portfolio 2009 - 30.00% -7.50% -15.00% -3.75% -18.75% 2010 63.00% 22.50% 31.50% 11.25% 42.75% 2011 30.00% -19.50% 15.00% -9.75% 5.25% 2012 -12.00% 75.00% -6.00% 37.50% 31.50% 2013 37.50% 18.00% 18.75% 9.00% 27.75% Average return 17.70%.