Question: Problem 6.7. Expected Return, Standard Deviation Calculate average rate of returns and standard deviation of the Coca Cola stock price and the Dow Jones Index,
Problem 6.7. Expected Return, Standard Deviation
Calculate average rate of returns and standard deviation of the Coca Cola stock price and the Dow Jones Index, based on data below.
| DATA | Part Solution | DATA | Part Solution | |
|
|
| (Current return/Previous return)-1 |
| (Current return/Previous return)-1 |
| Month | Coca Cola Stock Prices | Returns | Dow Jones Index Prices | Returns |
| Jan-20 | 58.40 |
| 28256.03 |
|
| Feb-20 | 53.49 | -0.08 | 25409.36 | -0.10 |
| Mar-20 | 44.25 | -0.17 | 21917.16 | -0.14 |
| Apr-20 | 45.89 | 0.04 | 24345.72 | 0.11 |
| May-20 | 46.68 | 0.02 | 25383.11 | 0.04 |
| Jun-20 | 44.68 | -0.04 | 25812.88 | 0.02 |
| Jul-20 | 47.24 | 0.06 | 26428.32 | 0.02 |
| Aug-20 | 49.53 | 0.05 | 28430.05 | 0.08 |
| Sep-20 | 49.37 | 0.00 | 27781.7 | -0.02 |
| Oct-20 | 48.06 | -0.03 | 26501.6 | -0.05 |
| Nov-20 | 51.60 | 0.07 | 29638.64 | 0.12 |
| Dec-20 | 54.44 | 0.06 | 30606.48 | 0.03 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
