Compute stock a variance

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Problem 1: The following data is the sample returns for Stock A from t1 to t6. Based on the historical approach (=sample approach), compute Stock A's expected return. Enter your answer in %, rounded to 2 decimal places.

Return

t1 7.0%

t2 5.8%

t3 2.3%

t4. 3.4%

t5. 2.2%

t6. 6.9%

Problem 2: The following data is the sample returns for Stock A from t1 to t4. Based on the historical approach (=sample approach), compute Stock A's variance. Enter your answer in %, rounded to two decimal places.

Return

t1. 3.5%

t2. 2.2%

t3. 2.8%

t4. 8.7%

Reference no: EM132964477

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