Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are given the following information concerning a stock and the market: Returns Year Market Stock 2014 18% 30% 2015 10% 15% 2016 18% 9%
| You are given the following information concerning a stock and the market: |
| Returns | ||
| Year | Market | Stock |
| 2014 | 18% | 30% |
| 2015 | 10% | 15% |
| 2016 | 18% | 9% |
| 2017 | -15% | -27% |
| 2018 | 37% | 16% |
| 2019 | 15% | 28% |
a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
| Martket | Stock | |
| Average return | ||
| Standard Deviation |
b. Calculate the correlation between the stock and the market, as well as the stocks beta. (Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)
| Correlation | |
| Beta |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started