Question
You are given the following information concerning a stock and the market: Year Returns Market Stock 2017 14% 26% 2018 10 10 2019 20 3
You are given the following information concerning a stock and the market:
Year | Returns | |
---|---|---|
Market | Stock | |
2017 | 14% | 26% |
2018 | 10 | 10 |
2019 | 20 | 3 |
2020 | 15 | 31 |
2021 | 35 | 16 |
2022 | 15 | 18 |
Calculate the average return and standard deviation for the market and the stock.
Note: Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Calculate the correlation between the stock and the market, as well as the stocks beta.
Note: 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.
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