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Suppose you observe the following month-end stock prices for stocks Y and Z: Day 0 1 2 3 4 Stock Y 100 105 102 97

Suppose you observe the following month-end stock prices for stocks Y and Z:

Day
0 1 2 3 4
Stock Y 100 105 102 97 100

Stock Z 100 105 150 97 100

Compute the following for each stock.

a. The mean monthly continuously compounded return

b. The annual return

c. The mean monthly standard deviation

d. The mean annual standard deviation

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