Question
The following table shows realized rates of return for two stocks. A B C 1 Year Stock A Stock B 2 1 14% 13% 3
The following table shows realized rates of return for two stocks.
| A | B | C | |
| 1 | Year | Stock A | Stock B |
| 2 | 1 | 14% | 13% |
| 3 | 2 | -17% | -14% |
| 4 | 3 | -6% | -3% |
| 5 | 4 | 5% | 28% |
| 6 | 5 | 14% | 8% |
| 7 | 6 | 14% | 7% |
Attempt 1/5 for 10 pts.
Part 1
What is the arithmetic average return for stock B?
Correct
| A | B | C | D | |
| 1 | Year | Stock A | Stock B | Formula |
| 2 | 1 | 14% | 13% | |
| 3 | 2 | -17% | -14% | |
| 4 | 3 | -6% | -3% | |
| 5 | 4 | 5% | 28% | |
| 6 | 5 | 14% | 8% | |
| 7 | 6 | 14% | 7% | |
| 8 | Average | 0.04 | 0.065 | =AVERAGE(C2:C7) |
Attempt 3/5 for 10 pts.
Part 2
What is the variance of stock A?
Submit
Attempt 2/5 for 10 pts.
Part 3
What is the variance of stock B?
Submit
Attempt 1/5 for 10 pts.
Part 4
What is the standard deviation of stock A?
Submit
Attempt 2/5 for 10 pts.
Part 5
What is the standard deviation of stock B?
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
The Everything Improve Your Credit Book
Authors: Justin Pritchard
1st Edition
1598691554, 978-1598691559
