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Problem #2: The following table shows realized rates of return for two stocks during a six year sample period. A B C 1 Year Stock
Problem #2: The following table shows realized rates of return for two stocks during a six year sample period.
A | B | C | |
1 | Year | Stock A | Stock B |
2 | 1 | 5% | 15% |
3 | 2 | -22% | -14% |
4 | 3 | -6% | -5% |
5 | 4 | 5% | 28% |
6 | 5 | 14% | 8% |
7 | 6 | 20% | 3% |
Part 1) What is the arithmetic average return for stock B?
Part 2) What is the variance for stock B? (Hint: variance formula in Excel starts with var)
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