Question
Risk and return - Calculate the return and standard deviation of each stock. You are considering investing in stocks and have identified the following potential
Risk and return - Calculate the return and standard deviation of each stock.
You are considering investing in stocks and have identified the following potential stocks. They are Alibaba Group Holding Limited (BABA), Amazon (AMZN), Kogan (KGN) and China Petroleum & Chemical (386). The table below shows the historical share prices ($) between 2016 and 2022. Note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020. Students should assume no dividend is distributed during this period and ignore the exchange rate conversion.
Year | Amazon (NASDAQ: AMZN) | Alibaba (NYSE: BABA) | Kogan (ASX: KZN) | China Petroleum & Chemical (HKG: 386) |
2016 | 587 | 67.03 | 1.715 | 4.33 |
2017 | 823.48 | 101.31 | 1.53 | 6.21 |
2018 | 1450.89 | 204.29 | 7.15 | 6.76 |
2019 | 1718.73 | 168.49 | 4.3 | 6.57 |
2020 | 2008.72 | 206.59 | 5.16 | 4.13 |
2021 | 3206.2 | 253.83 | 17.99 | 3.17 |
2022 | 2991.47 | 125.79 | 6.19 | 4.08 |
Calculate the return and standard deviation of each stock. Posting this a second time because the first answer isn't correct. please dont use ai to answer- it isn't correct.
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