Question

	company 1	company 2	company 3	company 4	market
1/1/2020	10%	10%	10%	10%	10%
12/1/2019	20%	40%	10%	40%	20%
11/1/2019	30%	30%	50%	30%	30%
10/1/2019	30%	50%	30%	20%	40%
9/1/2019	40%	40%	20%	10%	50%

Refer to the above table to answer part a-d.

a, How much is company 1’s average return in the past five months?

1. 26%
2. 27%
3. 28%
4. 29%

b, How much is company 1’s risk level in the past five months (standard deviation) if it is evaluated individually?

1. 13.37%
2. 12.07%
3. 9.35%
4. 11.40%

c, What is the beta of the company 1? (hint: check slope)

1. 0.4
2. 0.5
3. 0.6
4. 0.7

d, What is the correlation between company 1 and company 2?

1. 0.87
2. 0.30
3. 0.69
4. 0.15

Answer 1

Answer :(a.) Correct Option is (a.) 26%

(b.) Correct option is (d.) 11.40%

(c.) Correct Option is (d.) 0.7

(d.) Correct Option is (c.) 0.69

Below is the sheet showing various calculations :