Question

With the information given as follows, pick the correct answer

Years Market return Stock A return Stock B return

1 -3% -16% 5%

2 5% 20% 5%

3 1% -18% 5%

4 10% 25% 5%

5 -6% -14%   5%

The average return of market return is how much:

a. 1.1%

b. 1.2%

c. 1.3%

d. 1.4%

The risk of market return is how much:

a. 6.11%

b. 6.35%

c. 5.93%

d. 5.88%

The average of stock A’s return is how much: (changed in the actual final exam)

a. -0.6%

b. 0.45%

c. 1.53%

d. 2.97%

Answer 1

WE CAN FIND THE SOLUTIONS BY USING EXCEL.