Question
Assume that returns are effective annual rates or net discrete returns Stock and Market Portfolio Effective Annual Returns Year Return on Stock A Return on
Assume that returns are effective annual rates or net discrete returns
Stock and Market Portfolio Effective Annual Returns | ||
Year | Return on Stock A | Return on Market Portfolio |
2017 | 0.22 | 0.30 |
2018 | -0.16 | -0.07 |
2019 | 0.15 | 0.28 |
all answer to 6dp
a) What is stock As past arithmetic average net discrete return?
b) What is the markets past arithmetic average net discrete return?
c) What is the sample arithmetic standard deviation of stock As net discrete returns?
d) What is the sample arithmetic standard deviation of the market portfolios returns?
e) What is the covariance of stock As returns with the market portfolio?
f) What is the correlation of returns between stock A and the market?
g) What is the beta of stock A?
h) What is the diversifiable variance of stock A?
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