Using the following annual returns, calculate the estimates of the arithmetic mean returns, the variances, and the standard deviations for assets X and Y. Also calculate the estimates of the covariance and correlation between X and Y. These five years are a sample of the entire population of returns for X and Y. Year 2001 2002 2003 2004 2005 Returns X 11% 6% -8% 28% 13% Y 36% -7% 2% -12% 43% A stock has had returns over the past six years of 29%, 14%, 23%, -18%, 9%, and -14%. What was its arithmetic mean and geometric mean returns over that period? What was the standard deviation of its returns over this six-year period?
Using the following annual returns, calculate the estimates of the arithmetic mean returns, the variances, and the standard deviations for assets X and Y. Also calculate the estimates of the covariance and correlation between X and Y. These five years are a sample of the entire population of returns for X and Y. Year 2001 2002 2003 2004 2005 Returns X 11% 6% -8% 28% 13% Y 36% -7% 2% -12% 43% A stock has had returns over the past six years of 29%, 14%, 23%, -18%, 9%, and -14%. What was its arithmetic mean and geometric mean returns over that period? What was the standard deviation of its returns over this six-year period?
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter8: Time Series Analysis And_forecasting
Section: Chapter Questions
Problem 22P: Consider the following time series: a. Construct a time series plot. What type of pattern exists in...
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