Question
Question 2 : Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates or net discrete returns.
Question 2 : Refer to the below table to answer the questions that follow. 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 |
Provide answers as decimals rounded to 6 decimal places. For example, if your answer is 0.23456789, write it as 0.234568.
Question 2a What is stock As past arithmetic average net discrete return?
Question 2b : What is the markets past arithmetic average net discrete return?
Question 2c What is the sample arithmetic standard deviation of stock As net discrete returns?
Question 2d : What is the sample arithmetic standard deviation of the market portfolios returns?
Question 2e What is the covariance of stock As returns with the market portfolio?
Question 2f : What is the correlation of returns between stock A and the market?
Question 2g : What is the beta of stock A?
Question 2h : What is the diversifiable variance of stock A?
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