Question
The annual returns of three stocks for the past seven years are given in the following table: Year Stock X Stock Y Stock Z 2011
The annual returns of three stocks for the past seven years are given in the following table:
Year | Stock X | Stock Y | Stock Z |
2011 | 3.00% | 14.00% | 19.00% |
2012 | 9.00% | 7.00% | 11.00% |
2013 | 12.00% | 19.00% | 5.00% |
2014 | 19.00% | 13.00% | 12.00% |
2015 | 23.00% | -7.00% | 11.00% |
2016 | 5.00% | -3.00% | 7.00% |
2017 | 10.00% | 9.00% | 14.00% |
- Determine the average return and the standard deviation of returns for each stock. Which stock has the highest expected return and which one has the highest risk?
- Determine the correlation coefficient and the covariance between each pair of stocks.
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Mathematical Statistics With Applications In R
Authors: Chris P. Tsokos, K.M. Ramachandran
2nd Edition
124171133, 978-0124171138
