Question: a) From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. (Refer to slides 8,
a) From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. (Refer to slides 8, 12, and 14 covered in the lecture.)
| Year | Stock A | Stock B | Stock C | Stock D |
| 1 | 5 | -6 | 12 | 10 |
| 2 | 10 | 20 | 15 | -10 |
| 3 | 15 | 2 | 17 | 20 |
| 4 | 4 | -5 | -15 | |
| 5 | 10 | 8 | ||
| 6 | -7 | |||
| Average Annual Return | ? | ? | ? | ? |
| Variance | ? | ? | ? | ? |
| Standard Deviation | ? | ? | ? | ? |
| Coefficient of Variation | ? | ? | ? | ? |
b) Based upon your answers to Question 1, which asset appears riskiest based on standard deviation?
YOU MUST SHOW ALL WORK TO RECEIVE CREDIT.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
