Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the table provided, I need some help in figuring out parts, b and c. I am looking for the standard deviations of annual returns

image text in transcribed

Using the table provided, I need some help in figuring out parts, b and c.

I am looking for the standard deviations of annual returns for both Stantec and Canadian tire, and I am looking for the annual variance and annual standard deviation of the portfolio of 70% stantec and 30% Canadian tire.

image text in transcribed

image text in transcribed

image text in transcribed

Use the accompanying data to complete parts a through c below. a. Compute the correlation of monthly returns between Stantec and Canadian Tire. b. Compute the annual standard deviation of Stantec and Canadian Tire. c. Compute the annual variance and standard deviation of a portfolio of 70% Stantec stock and 30% Canadian Tire stock. Click the icon to view the data table. a. The correlation of monthly returns between Stantec and Canadian Tire is 0.18188 (Round to five decimal places.) b. The standard deviation of annual returns for Stantec is %. (Round to two decimal places.) Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 Dec-16 Nov-16 Oct-16 Sep-16 Aug-16 Jul-16 Jun-16 May-16 Apr-16 Mar-16 Feb-16 Jan-16 Dec-15 Returns (%) Canadian Stantec Tire 0.46 0.53 -5.05 3.41 6.83 1.91 -0.20 5.10 9.39 4.33 -2.48 - 3.56 4.51 - 4.03 - 10.82 - 7.35 1.87 5.46 0.76 3.73 - 1.81 10.56 3.17 -0.63 -5.38 -0.46 20.14 7.79 - 2.85 -0.76 - 1.41 - 2.20 -5.90 - 1.68 6.46 -2.53 -8.90 - 1.71 6.93 5.22 -2.19 1.09 16.94 2.77 - 17.34 15.85 -0.23 -3.39 -0.78 -5.56 5.39 Nov-15 Oct-15 9.28 - 4.19 12.86 - 3.14 - 4.56 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 -5.38 - 15.20 -0.07 6.10 5.55 7.89 - 5.04 2.14 -2.39 3.59 1.31 -0.96 - 2.04 12.88 - 4.52 - 4.34 4.26 Feb-15 Jan-15 Dec-14 - 1.85 - 3.83 - 7.02 7.69 Nov-14 Oct-14 Sep-14 Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 - 2.04 - 1.11 7.11 5.27 - 1.53 2.16 8.97 1.18 - 2.12 -2.44 3.28 4.39 3.31 -3.33 -0.41 Feb-14 0.10 5.50 3.43 - 4.44 - 4.16 10.91 -0.22 3.40 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 18.50 8.86 1.73 6.08 2.40 5.83 7.81 0.93 6.76 - 4.95 2.11 12.80 Jul-13 Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 -3.14 1.21 5.02 4.43 6.52 -0.37 3.58 0.06

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

The Dark Side Of Valuation

Authors: Aswath Damodaran

3rd Edition

0134854101, 9780134854106

More Books

Students also viewed these Finance questions