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Q 1 . As a broker, you are approached by a client who wants to invest money in energy or oil & gas stocks. The
Q As a broker, you are approached by a client who wants to invest money in energy or oil & gas stocks. The only information you have available to advise your client is the stock price indexes for energy only is in natural logarithm inserted on the following table:
tableStock Price Index,,,Return,Daily VolatilityDateENERGY,OIL&GAS,,,Energy,OIL&GAS,ENERGY,&GASMondayTuesdayWednesdayThursdayFridayMondayAveragestdevcorrelationcovariance
Your client is particularly interested in:
a The daily return for each stock
b The average daily return
c The relative risk associated to each stock
d The daily volatility of each stock
e The average daily volatility
f In which stock should investment money be invested?
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