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You've collected the following historical rates of return for stocks A and B: Year (t) rA,t rB,t 2016 0.02 0.02 2015 0.08 0.05 2014 0.12
You've collected the following historical rates of return for stocks A and B:
Year (t) | rA,t | rB,t |
2016 | 0.02 | 0.02 |
2015 | 0.08 | 0.05 |
2014 | 0.12 | 0.07 |
Part 1: What was the average annual return for stock A= 0.0733
Part 2: What was the average annual return for stock B?= 0.04667
Part 3: What was the standard deviation of returns for stock A?
Part 4: What was the standard deviation of returns for stock B?
Can you solve Part 3 and 4 using the information given? Part 1 and 2 are already answered.
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