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12.4..................................................................................... Using the data in the following table, , estimate the. a. Average return and volatility for each stock. b. Covariance between the stocks c.
12.4.....................................................................................
Using the data in the following table, , estimate the. a. Average return and volatility for each stock. b. Covariance between the stocks c. Correlation between these two stocks. a. Estimate the average retum and volatility for each stock The average return of stock A is 350 0/0. (Roundto two decimal places.) The average return of stock B is 12 0/0. (Round to two decimal places.) The standard deviation of stock A is 0.10597 . (Round to five decimal places.) The standard deviation of stock B is 0.15646. (Round b. Estimate the covariance between the stocks. (Roundto five decimal places.) The covariance is O Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet) Year Stock A Stock 8 2010 21% 2011 7% 2012 5% 2013 -5% -3% 2014 2% -8% 2015 9%
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