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Annual returns of three stocks are given below. Two of them (Air America and Air Brazil) are airline stocks and one (Star Oil) is an
Annual returns of three stocks are given below. Two of them (Air America and Air Brazil) are airline stocks and one (Star Oil) is an oil stock. In general, when oil prices go up, airline company stocks go down and oil company stocks go up. How much is the mean annual stock return? Notice that all three company stocks have the same annual return. Enter your answer in the following format: 0.1234 Hint: Answer is between 0.0169 and 0.0200 Researchers forecast the possible five economy states and their probabilities for the year 2023 as shown below. Also provided are the Stock return estimates in each of those five economic states. How much is the Coefficient of Variation (CV) of stock returns in the year 2023 ? Enter your answer in the following format: 0.1234 Hint: Answer is between 2.3978 and 2.9248
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