rate of return, standard deviation, and coefficient of variation. you have heard about the great returns that some private equity funds generate and have decided to evaluate blackrock inc and kkk & co inc. the table below provides 13 months of historical prices for each company. assume that neither company paid a dividend during this period calculate the monthly rate of return for each stock a. calculate the monthly rate of return for each stock. b. calculate the average monthly return for each stock. c. calculate the standard deviation of monthly returns for each stock d. based on parts b and c, determine the coefficient of variations for each stock. month blk stock price kkk stock price may 20 $485.80 $24.37 apr 20 502.04 25.21 mar 20 436.66 23.47 feb20 459.52 28.49 jan 20 523.38 31.78 dec 19 495.53 29.06 nov19 487.85 29.26 oct 19 455.12 28.60 sept 19 435.80 26.64 aug 19 413.23 25.51 jul 19 457.35 26.41 jun 19 455.45 24.95 may 19 403.30 21.88
a. calculate the monthly rate of return for each stock.
b. calculate the average monthly return for each stock.
c. calculate the standard deviation of monthly returns for each stock
d. based on parts b and c, determine the coefficient of variations for each stock.
month blk stock price kkk stock price
may 20 $485.80 $24.37
apr 20 502.04 25.21
mar 20 436.66 23.47
feb20 459.52 28.49
jan 20 523.38 31.78
dec 19 495.53 29.06
nov19 487.85 29.26
oct 19 455.12 28.60
sept 19 435.80 26.64
aug 19 413.23 25.51
jul 19 457.35 26.41
jun 19 455.45 24.95
may 19 403.30 21.88
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