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 3.50 %. (Round to two decimal places.) The average return of stock B is 12.00%. (Round to two decimal places.) (Round to five decimal places.) The standard deviation of stock A is Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2011 20% Stock A Stock B 7% 2010 - 10% 21% 2012 5% 30% 2013 - 5% - 3% 2014 2% - 8% 2015 9% 25% X
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 3.50 %. (Round to two decimal places.) The average return of stock B is 12.00%. (Round to two decimal places.) (Round to five decimal places.) The standard deviation of stock A is Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2011 20% Stock A Stock B 7% 2010 - 10% 21% 2012 5% 30% 2013 - 5% - 3% 2014 2% - 8% 2015 9% 25% X
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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Transcribed Image Text: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 3.50 %. (Round to two decimal places.)
The average return of stock B is 12.00 %. (Round to two decimal places.)
The standard deviation of stock A is. (Round to five decimal places.)
Data table
(Click on the following icon
Year
Stock A
Stock B
2010
- 10%
21%
in order to copy its contents into a spreadsheet.)
2011
2013
20%
- 5%
7%
- 3%
Print
2012
5%
30%
Done
2014
2%
- 8%
2015
9%
25%
X
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