Question
Using the data in the following table, estimate the average return and volatility for each stock....
Using the data in the following table, estimate the average return and volatility for each stock.
|
Realized Returns |
|||||
|
Year |
Stock A |
Stock B |
|||
|
2008 |
−7% |
15% |
|||
|
2009 |
16% |
40% |
|||
|
2010 |
99% |
11% |
|||
|
2011 |
−7% |
−3% |
|||
|
2012 |
22% |
−3% |
|||
|
2013 |
15% |
24% |
|||
The return of stock A is ????%. (Round to two decimal places.)
The return of stock B is ????%. (Round to two decimal places.)
The variance of stock A is ????(Round to five decimal places.)
The variance of stock B is ?????? (Round to five decimal places.)
The standard deviation of stock A is ???%.(Round to two decimal places.)
The standard deviation of stock B is ????%.(Round to two decimal places.)
Homework Answers
Answer #1
| Realized Returns | ||||
| Year | Stock A | Stock B | ||
| 2008 | -7% | 15% | ||
| 2009 | 16% | 40% | ||
| 2010 | 99% | 11% | ||
| 2011 | -7% | -3% | ||
| 2012 | 22% | -3% | ||
| 2013 | 15% | 24% | ||
| Average return | 23.00% | 14.00% | ||
| Standard deviation | 39.22% | 16.52% | ||
| Variance | 15.38% | 2.73% | ||
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