Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Suppose in the last month we have weekly returns for two stocks, they are as follows: Stock Week 1 Week 2 Week 3 Week 4

Suppose in the last month we have weekly returns for two stocks, they are as follows: Stock Week 1 Week 2 Week 3 Week 4 McDonalds 5% 4.0% -3.5% 1.8% Burger King 3.5% 2.1% -2.6% 3.1%

What is the standard deviation of McDonalds returns?

A. 4.1%

B. 0.08%

C. 3.29%

D. 0.224%

What is the standard deviation of Burger Kings returns?

A. 0.056%

B. 5.6%

C. 2.36%

D. 2.44%

What is the coefficient of variation of McDonalds returns? A. 0.45 B. 1.80 C. 6.19 D. 2.23

CV = Standard deviation/Expected return

What is the coefficient of variation of Burger Kings returns? A. 3.33 B. 0.30 C. 1.60 D. 1.34

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions