Question

You have the following information on the return to three stocks over the past 4 years. USE THIS INFORMATION TO ANSWER QUESTIONS 8 THROUGH 17

Ford GE Amazon

2016 10 - 6 2

2017 - 5 13 6

2018 14 - 5 1

2019 - 7 18 7

First question: What are the sample mean returns for each of these stocks?

	a.	Sample mean of Ford = 16 Sample mean of GE = 20 Sample mean of Amazon = 16
	b.	sample mean of Ford = 3 sample mean of GE = 5 sample mean of Amazon = 6
	c.	Sample mean of Ford = 3 Sample mean of GE =5 Sample mean of Amazon = 4
	d.	none of these

What are the sample variances in returns of the three stocks?

1. 	a.	Sample variance of Ford = 10.551 Sample variance of GE = 14.583 Sample variance of Amazon = 2.944
   	b.	sample variance of Ford = 111.333 sample variance of GE = 212.666 sample variance of Amazon = 89.666
   	c.	sample variance of Ford = 111.333 sample variance of GE = 151.333 sample variance of amazon = 8.666
   	d.	None of these

What are the sample standard deviations of the returns on the three stocks?

1. 	a.	sample standard deviation of Ford = 111.333 sample standard deviation of GE = 212.666 sample standard deviation of Amazon - 8.666
   	b.	sample standard deviation of Ford = 10.551 sample standard deviation of GE = 12.301 sample standard deviation of Amazon = 2.944
   	c.	sample standard deviation of Ford = 10.551 Sample standard deviation of GE =14.583 Sample standard deviation of Amazon = 8.666
   	d.	None of these

What is the sample covariance of the return on Ford and the return on GE?

	a.	- 40.66
	b.	- 147.666
	c.	- 127
	d.	None of these

Answer 1