Question: ( Average expected return and risk ) Given the holding-period returns shown here, calculate the average returns and the standard deviations for the Kaifu Corporation
(Average expected return and risk)
Given the holding-period returns shown here, calculate the average returns and the standard deviations for the Kaifu Corporation and for the market.
| MONTH | KAIFU CORP. | MARKET |
| |||
| 1 | 5% | 2% | ||||
| 2 | 6% | 4% | ||||
| 3 | 2% | 1% | ||||
| 4 | 3% | 2% | ||||
The average monthly return for Kaifu Corporation is
The average monthly return for the market is
The standard deviation for Kaifu Corporation is
The standard deviation for the market is
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