Question
You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700) and Commonwealth
You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The historical prices for the past 10 years are shown in the table below. Assume no dividend is distributed during this period.
Year | Crown | Tencent | Commonwealth (CBA) |
2010 | 7.76 | 29.04 | 53.63 |
2011 | 8.57 | 40.40 | 52.15 |
2012 | 8.09 | 37.94 | 50.39 |
2013 | 11.59 | 54.28 | 64.10 |
2014 | 16.68 | 108.70 | 73.83 |
2015 | 13.61 | 132 | 88.85 |
2016 | 12.27 | 144.90 | 78.67 |
2017 | 11.4 | 204.40 | 81.66 |
2018 | 13.25 | 463.60 | 78.87 |
2019 | 11.95 | 346 | 69.91 |
- (6 marks)
Calculate the return and risk (standard deviation) of each stock.
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