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

Basic Math
1.2K views

7 Fix p 0 p 1 and fix zo z1 E C Show that the...

Psychology
1.2K views

20. Provide a brief integrative explanation that involves genetic, biological, psychological and social processes (at least two)...

Basic Math
1.2K views

Find the smallest perimeter and the dimensions for a rectangle with an area of 49...

Algebra
1.2K views

Find i 1 23 i 1 i 1 i 1 JE CO I ab Enter...

Algebra
1.2K views

21 6 1 7k 7 1 6k 2 23 3 1 2x 3 6x 22...

Accounting
1.2K views

anna's Stuff loans an employee $10,000 at 6% annual interest with interest due monthly....

Accounting
1.2K views

Treasury Stock Transactions evelops and produces...

Accounting
1.2K views

The city of Lynndale has $50,000 in compensated absence long-term liabilities related to governmental fund...

Accounting
1.2K views

A number of companies have pending lawsuits or other contingent liabilities reported in their financial...

Accounting
1.2K views

For its 2022 taxation year, its first year of operation, PS Swim Inc. filed its...

Accounting
1.2K views

1 The U.S. Bureau of Labor Statistics reports that 10% of U.S. workers belong to...

Finance
1.2K views

(10 pts). (Present Worth). How much do you have to invest today in a 6\%...