Question
A stock records the following returns over the last 6 months. What are the arithmetic returns for the stocks? What are the geometric returns for
- A stock records the following returns over the last 6 months.
- What are the arithmetic returns for the stocks?
- What are the geometric returns for the stocks?
- What are the variances for the stocks?
- What are the standard deviations for the stocks?
- Compute the coefficient of variation of stocks.
- Which stock would you choose? Why?
| YEAR | Returns of the Stock 1
R | Variances 2 | YEAR | Returns of the Stock 2
R | Variances 2 |
| 1 | 6.31% |
| 1 | 12.25% |
|
| 2 | 5.98% |
| 2 | 12.98% |
|
| 3 | 5.74% |
| 3 | 12.86% |
|
| 4 | 5.12% |
| 4 | 9.76% |
|
| 5 | 4.76% |
| 5 | -3.21% |
|
| 6 | 4.01% |
| 6 | 4.01% |
|
| 7 | -2.57% |
| 7 | 4.21% |
|
| 8 | 3.50% |
| 8 | 5.98% |
|
| SUM |
|
| SUM |
|
|
| AVERAGE |
|
| AVERAGE |
|
|
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
