Estimate average return and volatility

Reference no: EM1368334

Using the information in the following table, estimate (a) the average return and volatility for each stock, (b) the covariance between the stocks, and (c) the correlation between these two stocks.

Realized Returns
Year Stock A Stock B
1998 -10% 21%
1999 20% 30%
2000 5% 7%
2001 -5% -3%
2002 2% -8%
2003 9% 25%

Reference no: EM1368334

Questions Cloud

Explain use of windows server network operating system : It has already decided to use Windows Server 2003 network operating system. What type of LAN will your team design for this company?

What will be dividend payout ratio : Puckett follows a residual distribution policy with all distribution as dividends, what will be its dividend payout ratio?

Compute the total overhead variance : Dinkel Manufacturing Company accumulates the following information relative to jobs started and finished during the month of June 2008.

Explain routers-vc or datagram architecture : Assume that routers were subjected to conditions which might cause them to fail fairly frequently. Would this argue in favor of VC or datagram architecture? Why?

Estimate average return and volatility : Using the information in the following table, estimate the average return and volatility for each stock, the covariance between the stocks

Building a web site so that customers can search for info : Building a Web site so that customers can search for information instead of calling the company's offices and speaking to a customer-service representative is an e-business strategy designed to increase profit by

Calculates size of rebate to maximizes total profits : I have a website where I offer cash rebates for purchasing stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate.

Write c program-visual studio to scan multiple text files : Write program in C or C++ and Visual Studio to scan multiple text files and count number of occurrences of each word in those files. Use binary tree to keep track of all words.

Calculate the hhi : Assume there are 12 firms in an industry. The percentage of total sales is given in the following table:

User Account

All Pages