As a new Investment Analyst for Burt & Brommer (B&B) Capital Management, Inc., you are asked to estimate the mean, variance, standard deviation of returns for FedEx (FDX) common stock. You have obtained the following "actual" annual rates of return for the previous fourteen years for both FedEx stock and the (NYSE: FDX Market Year (FDX-Mean)(Market-Mean) 2020 71,67 -2.01 -49177 2019 -27.74 5.46 31.24 2018 0.56 7.7 - 16.79 2017 26.68 28.91 330.64 2016 7.06 3.75 12.55 2015 -3.88 -2.12 133.60 2014 25.33 8.11 24.70 2013 15.04 9.87 10.69 2012 11.93 4.29 0.32 2011 -2.68 6.78 -7.91 2010 123.17 $7.05 564339 2009 -50.49 -45.24 3222.00 2008 -25.07 -3.86 375.50 2007 -2.29 8.73 -35.75 Mean 6.244286 SUM 9232 39 Variance 463.2035 COV Std Dev. 21.52216 BETA a) Using Excel, calculate the mean, variance and Standard deviation for FedEx stock. The Market Index values are given above. FDX Mean Variance Std. Dey b) Using Excel, calculated the covariance for FedEx stock with the NYSE Index Covariance After using Excel to calculate the covariance of FedEx Corporation stock returns with the Market Index, what is FDX's correlation with the market and its beta () using the covariance? Correlation Beta () c) Using Regression under Data in Excel, the y axis is FDX percentage returns and the x axis is the Market percentage returns. Copy and paste (as a picture) the regression output below. From the Regression output, what is the Beta for FDX Corporation stock? Beta (p) As a new Investment Analyst for Burt & Brommer (B&B) Capital Management, Inc., you are asked to estimate the mean, variance, standard deviation of returns for FedEx (FDX) common stock. You have obtained the following "actual" annual rates of return for the previous fourteen years for both FedEx stock and the (NYSE: FDX Market Year (FDX-Mean)(Market-Mean) 2020 71,67 -2.01 -49177 2019 -27.74 5.46 31.24 2018 0.56 7.7 - 16.79 2017 26.68 28.91 330.64 2016 7.06 3.75 12.55 2015 -3.88 -2.12 133.60 2014 25.33 8.11 24.70 2013 15.04 9.87 10.69 2012 11.93 4.29 0.32 2011 -2.68 6.78 -7.91 2010 123.17 $7.05 564339 2009 -50.49 -45.24 3222.00 2008 -25.07 -3.86 375.50 2007 -2.29 8.73 -35.75 Mean 6.244286 SUM 9232 39 Variance 463.2035 COV Std Dev. 21.52216 BETA a) Using Excel, calculate the mean, variance and Standard deviation for FedEx stock. The Market Index values are given above. FDX Mean Variance Std. Dey b) Using Excel, calculated the covariance for FedEx stock with the NYSE Index Covariance After using Excel to calculate the covariance of FedEx Corporation stock returns with the Market Index, what is FDX's correlation with the market and its beta () using the covariance? Correlation Beta () c) Using Regression under Data in Excel, the y axis is FDX percentage returns and the x axis is the Market percentage returns. Copy and paste (as a picture) the regression output below. From the Regression output, what is the Beta for FDX Corporation stock? Beta (p)
