Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is 3.50 %. (Round to two decimal places.) The average return of stock B is 12.00%. (Round to two decimal places.) (Round to five decimal places.) The standard deviation of stock A is Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2011 20% Stock A Stock B 7% 2010 - 10% 21% 2012 5% 30% 2013 - 5% - 3% 2014 2% - 8% 2015 9% 25% X

Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is 3.50 %. (Round to two decimal places.) The average return of stock B is 12.00%. (Round to two decimal places.) (Round to five decimal places.) The standard deviation of stock A is Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2011 20% Stock A Stock B 7% 2010 - 10% 21% 2012 5% 30% 2013 - 5% - 3% 2014 2% - 8% 2015 9% 25% X

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 6P: The market and Stock J have the following probability distributions: a. Calculate the expected rates...

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Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks.
Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2010 2011 20% 2013 - 1% - 13% Stock A Stock B 20% 12% - 9% Print 2012 8% 9% C Done 2014 4% - 9% 2015 11% 27% - X
What is the correlation between returns of stock S and T, given that covariance between stocks is 2.419 and standard deviation are 1.23 and 2.21, respectively.
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