Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following table shows historical beginning-of-year prices for two stocks. PLEASE SHOW ALL WORK A B C 1 Year Stock A Stock B 2 2014
The following table shows historical beginning-of-year prices for two stocks. PLEASE SHOW ALL WORK
A | B | C | |
1 | Year | Stock A | Stock B |
2 | 2014 | 34.43 | 576.93 |
3 | 2015 | 32.5 | 569.39 |
4 | 2016 | 31.87 | 593.72 |
5 | 2017 | 34.32 | 616.91 |
6 | 2018 | 32.02 | 541.96 |
7 | 2019 | 33.79 | 525.42 |
8 | 2020 | 29.61 | 484.1 |
9 | 2021 | 29.64 | 582.12 |
10 | 2022 | 30.52 | 635.5 |
Part 1
Calculate the annual returns. What was the arithmetic average annual return for stock B?
Part 2
What was the variance for stock B?
Part 3
What was the standard deviation for stock B?
Part 4
What was the covariance of returns?
Part 5
What was the correlation coefficient?
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