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In: Finance

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...

  1. Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.
  1. Calculate the arithmetic average return for both stocks. (5 points)
  2. Calculate the variance and standard deviation. (5 points)
  3. Compare and contrast the standard deviations of the two stocks. What do the numbers tell you? Which stock is riskier based on your calculation? (5 points)

Year

Return of stock:

You-Be, Inc.

Zee Corp.

1

12%

25%

2

28%

-34%

3

9%

13%

4

-7%

27%

5

10%

14%

Solutions

Expert Solution

jeff jeffy answered 3 years ago
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