Question: The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the

The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the volatility for each stock. (Click on the following icon order to copy its contents into a spreadsheet.) in Month January February March April May June July August September October November The average monthly return for Cola Co. is %. (Round to two decimal places.) Cola Co. 2.10% 0.30% 6.75% 0.50% 0.90% 3.40% 5.00% - 0.90% - 0.70% - 3.30% 3.20% Gas Co. 8.20% 0.60% 2.20% 2.30% 2.10% - 0.10% 1.70% - 3.10% 1.40% 3.40% 1.20% The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the volatility for each stock. (Click on the following icon order to copy its contents into a spreadsheet.) in Month January February March April May June July August September October November To find the average monthly return, use the following formula: 1 R=-== (R + R + + RT) X Calculate the average monthly return for Cola Co.: 1 R=2X x (7.10% + 5.30% + + 13.40%) = 3.58% 12 Cola Co. 7.10% 5.30% 10.20% 0.60% - 3.90% 11.50% - 10.10% 15.42% - 10.12% 9.90% - 6.37% Gas Co. - 17.10% 7.40% -4.70% 14.70% - 1.40% - 5.50% - 2.90% 11.22% -0.80% 1.80% - 2.50%
Step by Step Solution
3.41 Rating (151 Votes )
There are 3 Steps involved in it
First lets calculate the average monthly return for Cola Co by taking the average of all the monthly returns Average monthly return for Cola Co 210 03... View full answer
Get step-by-step solutions from verified subject matter experts
