Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2010. Using these data, calculate the average monthly return and volatility for

The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2010. Using these data, calculate the average monthly return and volatility for each stock. Then calculate the average return and volatility of a portfolio that is 55% invested in Cola Co. stock and 45% invested in Gas Co.
Realized Returns
Date Cola Co Gas Co. Portfolio of 55% Cola and 45% Gas
Jan -10.84% -6.00%
Feb 2.36% 1.28%
Mar 6.60% -1.86%
Apr 2.01% -1.90%
May 18.36% 7.40%
Jun -1.22% -0.26%
Jul 2.25% 8.36%
Aug -6.89% -2.46%
Sep -6.04% -2.00%
Oct 13.61% 0.00%
Nov 3.51% 4.68%
Dec 0.54% 2.22%
Average return
Volatility (standard Deviation)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Health Care Budgeting And Financial Management

Authors: William J. Ward Jr.

2nd Edition

1440833052, 9781440833052

More Books

Students also viewed these Finance questions

Question

5. What are the other economic side effects of accidents?

Answered: 1 week ago