The annual returns of three stocks for the past seven
years are given in the following...
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Finance
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%
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?
Determine the correlation coefficient and the covariancebetween each pair of stocks.
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