Question: Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year Stock A Stock B 2008 1%

Using the data in the following table, estimate the average return and volatility for each stock.

Realized Returns
Year Stock A Stock B
2008 1% 19%
2009 16% 23%
2010 10% 15%
2011 2% 9%
2012 3% 4%
2013 13% 21%

Part 1

The return of stock A is enter your response here%. (Round to two decimal places.)

Part 2

The return of stock B is enter your response here%. (Round to two decimal places.)

Part 3

The variance of stock A is enter your response here. (Round to five decimal places.)

Part 4

The variance of stock B is enter your response here. (Round to five decimal places.)

Part 5

The standard deviation of stock A is enter your response here%. (Round to two decimal places.)

Part 6

The standard deviation of stock B is enter your response here%. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Ch12 1. Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A Stock B 21% 25% 11% 19% 33% 99%...

Q:

Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year Stock A Stock B 2008 2% 27% 2009 10% 22% 2010 9% 5% 2011 6% 5% 2012 1% 15% 2013...

Q:

question 2 question 3 You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks: 67% of the money in GoldFinger (currently $23/share), 18%...

Q:

given the table answer the questions below 1) The return of stock A is %. (Round to two decimal places.) 2) The return of stock B is %. (Round to two decimal places.) 3) The variance of stock A is...

Q:

2013. 7% 33% please solve it in 20 mins I will thumb you up please also for 2013 Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns...

Q:

Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Stock B 16% 25% 15% Stock A 5% 5% 1% Year 2008 2009 2010 2011 2012 2013 7% 17% 2% 5%...

Q:

Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year 2008 2009 2010 2011 2012 2013 Stock A - 12% 15% 2% - 1% 5% 7% Stock B 24% 27%...

Q:

Year Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Stock A Stock B 2008 -6% 16% 2009 36% 2010 8% 15% 2011 2% -3% 2012 4% - 15%...

Q:

The return of stock A is ___ %. (Round to two decimalplaces.) The return of stock B is ____%. (Round to two decimalplaces.) The variance of stock A is ____%.(Round to five decimalplaces.) The...

Q:

Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Year Stock A Stock B 2008 -6% 25% 2009 8% 35% 2010 10% 2% 2011 - 5% - 10% 2012 2%...

Q:

ABC Company is planning for the production of two products: Product X and Product Y. Based on the assumption that all items can be sold, the manager wants to make decision on how many items to...

Q:

In Problem 9, for the game to be fair, how much should you lose if a head and a tail turn up? Problem 9 Two coins are flipped. You win $2 if either 2 heads or 2 tails turn up; you lose $3 if a head...

Q:

The duties of an accounting professional are based on the of investors and creditors

Q:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...