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

Question:

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

_____________________ Realized Returns

Year _____________ Stock A ________ Stock B

1998 .................... - 10% ............... 21%

1999 ...................... 20% ............... 30%

2000 ........................ 5% ................ 7%

2001 ..................... - 5% ............... - 3%

2002 ....................... 2% ............... - 8%

2003 ....................... 9% ................ 25%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

Question Posted: