
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Q7

Transcribed Image Text: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.)
The average return of stock B is %. (Round to two decimal places.)
(Round to five decimal places.)
(Round to five decimal places.)
The standard deviation of stock A is
The standard deviation of stock B is
b. Estimate the covariance between the stocks.
The covariance is (Round to five decimal places.)
c. Estimate the correlation between these two stocks.
The correlation is (Round to five decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
2010
Year
Stock A
Stock B
2011
20%
2013
- 5%
- 10%
21%
7%
- 3%
Print
2012
5%
30%
Done
2014
2%
- 8%
2015
9%
25%
-
X
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