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

The annual returns of three stocks for the past seven years 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 of returns for each stock. Which stock has the highest expected return and which one has the highest risk?
Determine the correlation coefficient and the covariance between each pair of stocks.

Solutions

Expert Solution

standard deviation ,covariance and correlation coefficient are rounded to two decimals

jeff jeffy answered 2 months ago

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