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The following data applies to all questions in this assignment: Show work: you answer cells should have the embedded algebra or Excel function. Rate of
| The following data applies to all questions in this assignment: |
| ||||||||||
| Rate of Return | |||||||||||
| Year | Asset A | Asset B | Market | ||||||||
| 1 | 20.00% | 19.00% | 10.00% | ||||||||
| 2 | -10.00% | 15.00% | 12.00% | ||||||||
| 3 | 10.00% | -5.00% | 8.00% | ||||||||
| 4 | -8.00% | -13.00% | -5.00% | ||||||||
| 5 | 15.00% | 25.00% | 10.00% | ||||||||
| 2015 Spring2 | |||||||||||
| 1) | Calculate the expected returns for Asset A, Asset B and the Market (use AVERAGE function in Excel). | ||||||||||
| Asset A = | |||||||||||
| Asset B = | |||||||||||
| Market = | |||||||||||
| 2) | Calculate the standard deviation of returns, , for each asset (use STDEVP function). | ||||||||||
| Asset A = | |||||||||||
| Asset B = | |||||||||||
| Market = | |||||||||||
| 3) | Calculate the coefficient of correlation, , between Asset A and Asset B (use CORREL function). | ||||||||||
| A,B = | |||||||||||
|
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
