Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, I am re-asking this question as the first solution I had received wasn't very clear , and I was not able to follow along
Hello, I am re-asking this question as the first solution I had received wasn't very clear , and I was not able to follow along manually on my calculator. I would like the following questions to be re answered, please. And I would like the working out for each of the stage to be outlined clearly with the formula. And I would like with a huge space in between, so I know which answer is for which question. Thank you .
Insert Draw Design References View SECURITY WARNING Macros have been disabled Layout Mallings Review Enable Content 223456789101112 13 14 151 17:18 Risk and return You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The historical prices for the past 10 years are shown in the table below. Assume no dividend is distributed during this period. I Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Crown 7.76 8.57 8.09 11.59 16.68 13.61 12.27 11.4 13.25 11.95 Tencent 29.04 40.40 37.94 54.28 108.70 132 144.90 204.40 463.60 346 Commonwealth (CBA) 53.63 52.15 50.39 64.10 73.83 88.85 78.67 81.66 78.87 69.91 1. (6 marks) Calculate the return and risk (standard deviation) of each stock, 2. (3 marks) Explain the relation (positive or negative) between risk and return based on your answers in part (1) Trish Australia) 3. (6 marks) Calculate the correlation coefficient between (a) Crown and Tencent and (b) Tencent and CBA. Focus O Type here to search 1 0.1080- w 100% I ENG 4:50 PM 20/11/20 E
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started