Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

Using the data in the following table, Eestimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. ED a. Estimate the average return and volatility for each stock. The average return of stock Ais %. (Round to two decimal places.) Data table The average return of stock B is %. (Round to two decimal places.) The standard deviation of stock A is (Round to five decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 2012 2013 2014 Stock A -9% 17% 9% - 3% 3% Stock B 23% 6% 31% - 4% - 13% The standard deviation of stock B is. (Round to five decimal places.) 2015 8% 25% b. Estimate the covariance between the stocks. The covariance is (Round to five decimal places.) c. Estimate the correlation between these two stocks. Print Done The correlation is (Round to five decimal places.)

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

Local Public Finance

Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer

1st Edition

3030674681, 978-3030674687

More Books

Students also viewed these Finance questions