Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the annual returns of three stocks for the past se

The annual returns of three stocks for the past seven years are given in the following...

80.2K

Verified Solution

Question

Finance

  1. The annual returns of three stocks for the past sevenyears are given in the following table:

Year

Stock X

Stock Y

Stock Z

2011

3.00%

14.00%

19.00%

2012

9.00%

7.00%

11.00%

2013

12.00%

19.00%

5.00%

2014

19.00%

13.00%

12.00%

2015

23.00%

-7.00%

11.00%

2016

5.00%

-3.00%

7.00%

2017

10.00%

9.00%

14.00%

  1. Determine the average return and the standard deviation ofreturns for each stock. Which stock has the highest expected returnand which one has the highest risk?
  2. Determine the correlation coefficient and the covariancebetween each pair of stocks.

Answer & Explanation Solved by verified expert
4.0 Ratings (765 Votes)
standard    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Design a concentric tube heat exchanger (in co-current configuration) to heat 1000 cm3/ min of water...

Mechanical Engineering
Q

The signal output from a certain process in an industry is described by the following equation h...

Electrical Engineering
Q

Question 6: Recommend/ Explain a program that takes the information of 40 students in following order Name: Father Name: Enrollment...

Electrical Engineering
Q

Using the following information ... to forecast the incremental expected Profit or Loss from the new clinic. Generic...

Accounting
Q

0 Small identical balls with equal charges are fixed at vertices of regular 2008 gon...

Physics
Q

9 In a certain hypothetical radioactive decay process species A decays into species B and...

Physics
Q

Two parallel chords of a circle MN and PQ have lengths 12 cm and 16...

Geometry
Q

K Replace the with either E or to express a true statement Carl Friedrich Gauss...

Basic Math
Q

8 Which table of values does NOT represent a direct variation X y X y...

Algebra
Q

Question related to Memphasys Reproductive Biotechnology 2022 Annual Financial Report. In terms of triple bottom...

Accounting
Q

Fitness Workout, Inc., is a small business. Siblings Grady and Heidi, and nine other members...

Accounting
Q

Having trouble with question 1 and 2. Question 1: NEWS would like to compare two...

Accounting