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
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 6P: The market and Stock J have the following probability distributions: a. Calculate the expected rates...
Related questions
Question
Need all
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning