You are given the following information concerning a stock and the market Returns Year 2014 Market Stock 10% 25% 2015 17 17 2016 22 4 2017 -12 -20 2018 2019 35 15 16 25 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Average return Standard deviation Market Stock % % % % b. Calculate the correlation between the stock and the market, as well as the stock's beta. (Use Excel to complete the problem. Do not round Intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.) Correlation Beta
You are given the following information concerning a stock and the market Returns Year 2014 Market Stock 10% 25% 2015 17 17 2016 22 4 2017 -12 -20 2018 2019 35 15 16 25 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Average return Standard deviation Market Stock % % % % b. Calculate the correlation between the stock and the market, as well as the stock's beta. (Use Excel to complete the problem. Do not round Intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.) Correlation Beta
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:You are given the following information concerning a stock and the market
Returns
Year
Market
2014
10%
Stock
25%
2015
17
17
2016
22
4
2017
-12
-20
2018
2019
35
15
16
25
a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not
round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Average return
Standard deviation
Market
Stock
%
%
%
%
b. Calculate the correlation between the stock and the market, as well as the stock's beta. (Use Excel to complete the problem. Do
not round Intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)
Correlation
Beta
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