You are given the following information concerning a stock and the market: Returns Year Market Stock 2014 10 % 25 % 2015 12 28 2016 13 4 2017 −14 −22 2018 37 16 2019 15 23 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.) 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.)
You are given the following information concerning a stock and the market: Returns Year Market Stock 2014 10 % 25 % 2015 12 28 2016 13 4 2017 −14 −22 2018 37 16 2019 15 23 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.) 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.)
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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You are given the following information concerning a stock and the market:
| Returns | ||||||
| Year | Market | Stock | ||||
| 2014 | 10 | % | 25 | % | ||
| 2015 | 12 | 28 | ||||
| 2016 | 13 | 4 | ||||
| 2017 | −14 | −22 | ||||
| 2018 | 37 | 16 | ||||
| 2019 | 15 | 23 | ||||
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.)
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.)
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