Question
Use the following data to answer questions 9 to 14. Based on the following data of General Electric traded on the NYSE and the market
Use the following data to answer questions 9 to 14.
Based on the following data of General Electric traded on the NYSE and the market benchmark S&P 500 index:
Year | X= S&P 500 index returns (market) | Y = General Electric returns |
2015 | 0.15 | 0.16 |
2016 | 0.14 | 0.16 |
2017 | 0.07 | 0.08 |
2018 | -0.12 | -0.15 |
2019 | -0.10 | -0.18 |
2020 | 0.19 | 0.18 |
2021 | 0.30 | 0.36 |
Compute the expected return (arithmetic mean) of the S&P500 (market) and the SAMPLE standard deviation of the S&P500 returns on the basis of historical returns.
(CHOOSE THE CLOSEST ANSWER).
Group of answer choices
E(r) = 0.1214 and (r) = 0.1274
E(r) = 0.1214 and (r) = 0.1476
E(r) = 0.0957 and (r) = 0.1971
E(r) = 0.0900 and (r) = 0.1532
E(r) = 0.1014 and (r) = 0.1611
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