Question
In: Finance
Using the data in the following table, estimate the average return and volatility for each stock....
Using the data in the following table, estimate the average return and volatility for each stock.
Year Stock A Stock b
2008 -5% 15%
2009 19% 31%
2010 10% 4%
2011 -4% .5%
2012 3% -9%
2013 15% 23%
What is the variance of stock a? Stock b?
Solutions
Expert Solution
| Year | Stock A | Stock B |
| 2008 | -5.00% | 15.00% |
| 2009 | 19.00% | 31.00% |
| 2010 | 10.00% | 4.00% |
| 2011 | -4.00% | 0.50% |
| 2012 | 3.00% | -9.00% |
| 2013 | 15.00% | 23.00% |
| Average Return for Stock A = | =SUM(B3:B8)/6 | = | 6.33% |
| Average Return for Stock B = | =SUM(C3:C8)/6 | = | 10.75% |
| Variance for Stock A = | =VAR.S(B3:B8) | = | 0.99% |
| Variance for Stock B = | =VAR.S(C3:C8) | = | 2.24% |
Please
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jeff jeffy answered 2 years agoRelated Solutions
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