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A stock records the following returns over the last 6 months. What are the arithmetic returns...

  1. A stock records the following returns over the last 6 months.
  1. What are the arithmetic returns for the stocks?
  2. What are the geometric returns for the stocks?
  3. What are the variances for the stocks?
  4. What are the standard deviations for the stocks?
  5. Compute the coefficient of variation of stocks.
  6. Which stock would you choose? Why?

YEAR

Returns of the Stock 1

        

        R

Variances        σ2

YEAR

Returns of the Stock 2

        

        R

Variances        σ2

1

6.31%

1

12.25%

2

5.98%

2

12.98%

3

5.74%

3

12.86%

4

5.12%

4

9.76%

5

4.76%

5

-3.21%

6

4.01%

6

4.01%

7

-2.57%

7

4.21%

8

3.50%

8

5.98%

SUM

SUM

AVERAGE

AVERAGE

Solutions

Expert Solution

SIMPLE CALCULATIONS, NO EXCEL FUNCTION IS USED

jeff jeffy answered 6 months ago
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