Consider the rates of return of the following securities over the past three years Year Stock...

  

Transcribed Image Text:

Consider the rates of return of the following securities over the past three years Year Stock Market Index Fund Stock Picky 2008 2009 2010 12% 24% 20% 16% 14% 20% Determine: a) The average market return and the average return of Picky [6 points] b) The standard deviation of the market return and the standard deviation of Picky [6 points] c) The beta of Picky [8 points] Consider the rates of return of the following securities over the past three years Year Stock Market Index Fund Stock Picky 2008 2009 2010 12% 24% 20% 16% 14% 20% Determine: a) The average market return and the average return of Picky [6 points] b) The standard deviation of the market return and the standard deviation of Picky [6 points] c) The beta of Picky [8 points]