Answered step by step
Verified Expert Solution
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
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