Question

You've collected the following historical rates of return for stocks A and B: Year (t) rA,t...

You've collected the following historical rates of return for stocks A and B:

Year (t) rA,t rB,t
2016 0.02 0.02
2015 0.08 0.05
2014 0.19 0.07

1. What was the average annual return for stock A

2. What was the average annual return for stock B?

3. What was the standard deviation of returns for stock A?

4.What was the standard deviation of returns for stock B?

Homework Answers

Answer #1

Stock A:

Stock B:

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