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a) Calculate the annual returns. What was the arithmetic average annual return for stock B? b) What was the variance for stock B? c) What
a) Calculate the annual returns. What was the arithmetic average annual return for stock B?
b) What was the variance for stock B?
c) What was the standard deviation for stock B?
d) What was the covariance of returns?
e) What was the correlation coefficient?
The following table shows historical beginning-of-year prices for two stocks. B Year Stock B 1 Stock A 31.1 2. 3 2013 2014 574.08 564.55 29.17 4 2015 28.54 587.03 5 5 2016 31.5 610.22 2017 29.2 535.27 6 7 2018 30.97 517.57 8 2019 8 9 26.81 26.84 27.72 476.25 574.27 2020 10 2021 627.65Step by Step Solution
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