Question
In: Finance
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return
You are considering an investment in the stock market and have identified three potential stocks, they are Crown (ASX: CWN), Tencent (HKG: 0700), and Commonwealth Bank (ASX: CBA). The historical prices for the past 10 years are shown in the table below. Assume no dividend is distributed during this period.
|
Year |
Crown |
Tencent |
Commonwealth (CBA) |
|
2010 |
7.76 |
29.04 |
53.63 |
|
2011 |
8.57 |
40.40 |
52.15 |
|
2012 |
8.09 |
37.94 |
50.39 |
|
2013 |
11.59 |
54.28 |
64.10 |
|
2014 |
16.68 |
108.70 |
73.83 |
|
2015 |
13.61 |
132 |
88.85 |
|
2016 |
12.27 |
144.90 |
78.67 |
|
2017 |
11.4 |
204.40 |
81.66 |
|
2018 |
13.25 |
463.60 |
78.87 |
|
2019 |
11.95 |
346 |
69.91 |
- Calculate the standard deviation of the Crown, Tencent, and CBA.
Solutions
Expert Solution
S.D.= Square Root of Square of Deviations aroound Mean/No.of Observations
S.D. of Crown=21.97%
S.D. of Tencent= 45.73%
S.D. of Common Wealth Bank=13.17%
No. of observations=9
jeff jeffy answered 1 year agoRelated Solutions
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return
You are considering an investment in the stock market and have
identified three potential stocks, they are Crown (ASX: CWN),
Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The
historical prices for the past 10 years are shown in the table
below. Assume no dividend is distributed during
this period.
Year
Crown
Tencent
Commonwealth (CBA)
2010
7.76
29.04
53.63
2011
8.57
40.40
52.15
2012
8.09
37.94
50.39
2013
11.59
54.28
64.10
2014
16.68
108.70
73.83
2015
13.61...
Risk and return You are considering an investment in the stock market and have identified three...
Risk and return
You are considering an investment in the stock market and have
identified three potential stocks, they are Crown (ASX: CWN),
Tencent (HKG: 0700), and Commonwealth Bank (ASX: CBA). The
historical prices for the past 10 years are shown in the table
below. Assume no dividend is distributed during
this period.
Year
Crown
Tencent
Commonwealth (CBA)
2010
7.76
29.04
53.63
2011
8.57
40.40
52.15
2012
8.09
37.94
50.39
2013
11.59
54.28
64.10
2014
16.68
108.70
73.83
2015
13.61...
Risk and return You are considering an investment in the stock market and have identified two...
Risk and return You are considering an investment in the stock
market and have identified two potential stocks, they are Westpac
Banking Corp. (ASX: WBC) and Singapore Airlines Ltd. (SGX: C6L).
The historical prices for the past 10 years are shown in the table
below.
Year
ASX:WBC
SGX:C6L
2011
23.70
13.82
2012
22.85
14.76
2013
21.01
11.1
2014
27.85
10.99
2015
30.85
11.03
2016
31.71
9.90
2017
30.96
11.31
2018
24.55
9.65
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You are considering an investment in the stock market and have identified three potential stocks, they...
You are considering an investment in the stock market and have
identified three potential stocks, they are Crown (ASX: CWN),
Tencent (HKG: 0700) and Commonwealth Bank (ASX: CBA). The
historical prices for the past 10 years are shown in the table
below. Assume no dividend is distributed during
this period.
Year
Crown
Tencent
Commonwealth (CBA)
2010
7.76
29.04
53.63
2011
8.57
40.40
52.15
2012
8.09
37.94
50.39
2013
11.59
54.28
64.10
2014
16.68
108.70
73.83
2015
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88.85
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market and have identified two potential stocks, they are Westpac
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The historical prices for the past 10 years are shown in the table
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22.85
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2011
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2012
27.85
10.99
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