26 29 2011 2012 2013 2014 2015 2016 13 14 37 15 -23 16 24 a. Calculate the avera

Question

26 29 2011 2012 2013 2014 2015 2016 13 14 37 15 -23 16 24 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Market b. Calculate the correlation between the stock and the market, as well as the stock's beta. (Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)

Explanation / Answer

Average return for stock=(14+13+14-14+37+15)/6=AVERAGE(14,13,14,-14,37,15)=13.1667%

Average return for market=(26+29+5-23+16+24)/6=AVERAGE(26,29,5,-23,16,24)=12.8333%

Standard Deviation for stock=STDEV.P(14,13,14,-14,37,15)=14.78081%

Standard Deviation for market=STDEV.P(26,29,5,-23,16,24)=17.86446%

Correlation between market and stock=CORREL({14,13,14,-14,37,15},{26,29,5,-23,16,24})=0.676111

Beta for stock=Correlation*Standard Devaiiton of stock/Standard Deviation of market=0.676111*14.78081%/17.86446%=0.559405

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---