Question
You are given the following information concerning a stock and the market: Returns Year Market Stock 2011 18 % 34 % 2012 11 27 2013
You are given the following information concerning a stock and the market:
| Returns | ||||||
| Year | Market | Stock | ||||
| 2011 | 18 | % | 34 | % | ||
| 2012 | 11 | 27 | ||||
| 2013 | 12 | 3 | ||||
| 2014 | 14 | 21 | ||||
| 2015 | 37 | 16 | ||||
| 2016 | 15 | 22 | ||||
a. Calculate the average return and standard deviation for the market and the stock.
b. Calculate the correlation between the stock and the market, as well as the stocks beta.
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
