Data for daily returns is provided below for Chinese Stocks. Calculate expected returns and standard deviation and
Question:
Data for daily returns is provided below for Chinese Stocks. Calculate expected returns and standard deviation and recommend which counter you would invest in based on expected returns and secondly on risk.
| Listed Company Code_Comcd | Stock Code_Stkcd | Latest Stock Name_Lstknm | Date_Date | Daily Return_Dret |
| C603508 | 603508 | Thinker | 2018-01-18 | 0,0138 |
| C603508 | 603508 | Thinker | 2018-01-19 | -0,0054 |
| C603508 | 603508 | Thinker | 2018-01-22 | 0,0116 |
| C603508 | 603508 | Thinker | 2018-01-23 | 0,0018 |
| C603508 | 603508 | Thinker | 2018-01-24 | 0,014 |
| C603508 | 603508 | Thinker | 2018-01-25 | -0,0123 |
| C603508 | 603508 | Thinker | 2018-01-26 | -0,0081 |
| C603508 | 603508 | Thinker | 2018-01-29 | -0,0154 |
| C603508 | 603508 | Thinker | 2018-01-30 | -0,0508 |
| C603508 | 603508 | Thinker | 2018-01-31 | -0,0634 |
| C603508 | 603508 | Thinker | 2018-02-01 | -0,0129 |
| C603508 | 603508 | Thinker | 2018-02-02 | 0,0457 |
| C603508 | 603508 | Thinker | 2018-02-05 | -0,0281 |
| C603508 | 603508 | Thinker | 2018-02-06 | -0,0315 |
| C603508 | 603508 | Thinker | 2018-02-07 | 0,0166 |
| C603508 | 603508 | Thinker | 2018-02-08 | 0,0122 |
| C603508 | 603508 | Thinker | 2018-02-09 | -0,019 |
| C603508 | 603508 | Thinker | 2018-02-12 | 0,0182 |
| C603508 | 603508 | Thinker | 2018-02-13 | 0,0009 |
| C603508 | 603508 | Thinker | 2018-02-14 | 0,0026 |
| C603508 | 603508 | Thinker | 2018-02-22 | 0,0102 |
| C603508 | 603508 | Thinker | 2018-02-23 | 0,0017 |
| C603508 | 603508 | Thinker | 2018-02-26 | 0,0254 |
| C603508 | 603508 | Thinker | 2018-02-27 | 0,0245 |
Expert Answer:
Based on the provided daily return data 1 Calculated the expected return and standard deviation fo... View the full answer
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
