The following table shows historical beginning-of-year prices for two stocks. A B C Year Stock A Stock B 2014 33.47 575.35 2015 31.54 569.84 30.91 594.22 33 617.41 30.7 542.46 32.47 531.9 28.34 490.58 28.37 588.6 29.25 641.98 4+ decimals Part 1 Calculate the annual returns. What was the arithmetic average annual return for stock B? Submit Part 2 What was the variance for stock B? 4+ decimals Submit 3+ decimals Part 3 What was the standard deviation for stock B? Submit Part 4 What was the covariance of returns? 5+ decimals Submit Part 5 What was the correlation coefficient? 1 2 3 4 5 6 2018 7 2019 8 2020 9 2021 10 2022 2+ decimals 2016 2017 Submit
The following table shows historical beginning-of-year prices for two stocks. A B C Year Stock A Stock B 2014 33.47 575.35 2015 31.54 569.84 30.91 594.22 33 617.41 30.7 542.46 32.47 531.9 28.34 490.58 28.37 588.6 29.25 641.98 4+ decimals Part 1 Calculate the annual returns. What was the arithmetic average annual return for stock B? Submit Part 2 What was the variance for stock B? 4+ decimals Submit 3+ decimals Part 3 What was the standard deviation for stock B? Submit Part 4 What was the covariance of returns? 5+ decimals Submit Part 5 What was the correlation coefficient? 1 2 3 4 5 6 2018 7 2019 8 2020 9 2021 10 2022 2+ decimals 2016 2017 Submit
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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Answer final 2
![### Intro
The following table shows historical beginning-of-year prices for two stocks.
| A | B | C |
|-------|---------|----------|
| Year | Stock A | Stock B |
| 2014 | 33.47 | 575.35 |
| 2015 | 31.54 | 569.84 |
| 2016 | 30.91 | 594.22 |
| 2017 | 33.0 | 617.41 |
| 2018 | 30.7 | 542.46 |
| 2019 | 32.47 | 531.9 |
| 2020 | 28.34 | 490.58 |
| 2021 | 28.37 | 588.6 |
| 2022 | 29.25 | 641.98 |
### Part 1
Calculate the annual returns. What was the arithmetic average annual return for stock B?
- Answer with 4+ decimals.
[Submit Button]
### Part 2
What was the variance for stock B?
- Answer with 4+ decimals.
[Submit Button]
### Part 3
What was the standard deviation for stock B?
- Answer with 3+ decimals.
[Submit Button]
### Part 4
What was the covariance of returns?
- Answer with 5+ decimals.
[Submit Button]
### Part 5
What was the correlation coefficient?
- Answer with 2+ decimals.
[Submit Button]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75fb4f79-5bfb-4902-85d2-e1edc76b1d17%2F9a41ef50-8f06-47dd-a172-bc1560edd01d%2F6z8b0k8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Intro
The following table shows historical beginning-of-year prices for two stocks.
| A | B | C |
|-------|---------|----------|
| Year | Stock A | Stock B |
| 2014 | 33.47 | 575.35 |
| 2015 | 31.54 | 569.84 |
| 2016 | 30.91 | 594.22 |
| 2017 | 33.0 | 617.41 |
| 2018 | 30.7 | 542.46 |
| 2019 | 32.47 | 531.9 |
| 2020 | 28.34 | 490.58 |
| 2021 | 28.37 | 588.6 |
| 2022 | 29.25 | 641.98 |
### Part 1
Calculate the annual returns. What was the arithmetic average annual return for stock B?
- Answer with 4+ decimals.
[Submit Button]
### Part 2
What was the variance for stock B?
- Answer with 4+ decimals.
[Submit Button]
### Part 3
What was the standard deviation for stock B?
- Answer with 3+ decimals.
[Submit Button]
### Part 4
What was the covariance of returns?
- Answer with 5+ decimals.
[Submit Button]
### Part 5
What was the correlation coefficient?
- Answer with 2+ decimals.
[Submit Button]
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