Question
You have decided to create a table to analyze the performance of two stocks and you will select one for inclusion in your portfolio. Given
You have decided to create a table to analyze the performance of two stocks and you will select one for inclusion in your portfolio. Given the end-of-year price data presented below, answer the following questions. Adding columns to your table will facilitate analysis.
Using excel answer the following:
A.) What are the annual rates of return for each stock?
B.) What is the average rate of return for each stock?
C.) What is the standard deviation for each stock?
D.) Which stock is riskier?
Year | Stock A | Stock B |
2011 | $77.50 | $42.50 |
2012 | 88.75 | 47.70 |
2013 | 127.82 | 58.10 |
2014 | 94.14 | 50.87 |
2015 | 103.30 | 35.38 |
2016 | 148.43 | 64.14 |
2017 | 153.71 | 78.32 |
2018 | 199.07 | 99.55 |
2019 | 228.55 | 112.16 |
2020 | 91.50 | 125.49 |
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