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The returns on QRC stock and an investors portfolio over three years are given in the table below. Based on this data, compute the volatility
The returns on QRC stock and an investors portfolio over three years are given in the table below.
Based on this data, compute the volatility of the portfolio and briefly describe how to interpret it.
Based on this data, calculate the correlation between QRC and the portfolio, and briefly describe what it means. Show your work.
Suppose the portfolio represents the portfolio of all wealth. What is QRCs market beta?
Year | QRC | Portfolio |
1 | 5.0% | 19.0% |
2 | -3.0% | 14.0% |
3 | 13.0% | 9.0% |
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