Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the data in the following table, 2 , estimate the a. Average return and volatility for each stock. b. Covariance between the stocks. c.

image text in transcribed

Using the data in the following table, 2 , estimate the a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. ----- a. Estimate the average return and volatility for each stock. The average return of stock A is (Round to two decimal places.) The average return of stock B is %. (Round to two decimal places.) 1 The standard deviation of stock A is (Round to five decimal places.) Data table The standard deviation of stock B is (Round to five decimal places.) b. Estimate the covariance between the stocks. (Click on the following icon in order to copy its contents into a spreadsheet.) The covariance is . (Round to five decimal places.) 2010 Year Stock A Stock B -8% 2011 15% 22% 2012 5% 43% 2013 -9% - 4% 2014 3% - 14% 2015 13% 29% c. Estimate the correlation between these two stocks. 29% The correlation is (Round to five decimal places.) Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles And Practices

Authors: Timothy J. Gallagher

9th Edition

1954156103, 978-1954156104

More Books

Students also viewed these Finance questions