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1. Estimate and compare the risk and return of each stock and the S&P 500 (i.e. annual standard deviation over the past five years). Which
1. Estimate and compare the risk and return of each stock and the S&P 500 (i.e. annual standard deviation over the past five years). Which stock appears to be riskiest? How might the expected return of each stock relate to its riskiness?
See Data Provided Below; please provide answer and formula in excel
Date | SPY | SBUX | GM | VZ | XPO | RF |
Year 1 | 0.92% | 0.48% | 0.28% | 0.02% | 4.30% | 0.03% |
Year 2 | 0.01% | 3.31% | 0.08% | 0.39% | -2.21% | 0.05% |
Year 3 | 0.81% | -0.56% | 0.42% | 1.73% | 4.94% | 0.32% |
Year 4 | 1.49% | 0.38% | 1.45% | 0.45% | 6.82% | 0.93% |
Year 5 | 0.44% | 1.56% | -0.28% | 1.31% | -1.57% | 1.94% |
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