Question: 2. Valuation and Risk: For Airbnb, we calculated the average return rate, standard deviation, and variance of the stock return. For the average return
2. Valuation and Risk: For Airbnb, we calculated the average return rate, standard deviation, and variance of the stock return. For the average return we got 0.09, for standard deviation we got 0.44, and for variance, we ended with 0.19. In comparison to the S&P 500, we saw that Airbnb's numbers were overall higher in every category with 0.08 in return, 0.21 in standard deviation, and 0.04 in variance. Airbnb 2020 Adj. close 146.8 Return S&P 500 2020 Adj. close Return 3756.07 2021 166.49 2022 85.5 2023 136.14 2024 155.01 0.134128065 -0.486455643 2022 0.592280702 2023 0.138607316 2024 2021 4766.18 0.268927363 3839.5 -0.194428242 4769.83 0.242304988 4967.23 0.041385123 Avg. Return 0.09464011 Avg. Return 0.089547308 Stand. 0.44302402 Stand. 0.214843992 variance 0.196270282 variance 0.046157941
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