Using the data in the following table,, estimate the:a. Average return and volatility for each stock.b. Covariance between the stocks.c. Correlation between these two stocks.a. Estimate the average return and volatility for each stock.The average return of stock A is%. (Round to two decimal places.)Data table(Click on the following icon in order to copy its contents into a spreadsheet.)YearStock A201020112012201320142015- 1%6%2%-5%4%6%Stock B20%9%8%-3%- 5%21%PrintDone☑Clear

Given Data: YearStock AStock B2010-1%20%20116%9%20122%8%2013-5%-3%20144%-5%20156%21%

a. Average return and volatility 5. Covariance between the sto C. Correlation between these tw ■. Estimate the average return The average return of stock Ai Data table (Click on the following ice Year Stock A 201 - 1 Stock B 20

a. Average return and volatility 5. Covariance between the sto C. Correlation between these tw ■. Estimate the average return The average return of stock Ai Data table (Click on the following ice Year Stock A 201 - 1 Stock B 20

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

Using the data in the following table,, estimate the:
a. Average return and volatility for each stock.
b. Covariance between the stocks.
c. Correlation between these two stocks.
a. Estimate the average return and volatility for each stock.
The average return of stock A is
%. (Round to two decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year
Stock A
2010
2011
2012
2013
2014
2015
- 1%
6%
2%
-5%
4%
6%
Stock B
20%
9%
8%
-3%
- 5%
21%
Print
Done
☑
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