Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  1. (6 marks)

Calculate the return and risk (standard deviation) of each stock.

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 Complete Guide To Property Finance

Authors: Richard W J Brown

1st Edition

1739832027, 978-1739832025

More Books

Students also viewed these Finance questions