The following spreadsheet contains monthly returns forCola Co. and Gas Co. for 2013. Using these data,estimate the average monthly return and the volatility foreach stock. (Click on the following icon in order to copyits contents into a spreadsheet.)MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberThe average monthly return for Cola Co. is%. (Round to two decimal places.)Cola Co.- 6.80%7.40%-2.10%4.30%11.30%1.40%4.10%- 0.60%0.80%1.90%0.70%- 2.90%Gas Co.- 3.00%- 7.70%0.20%3.10%- 1.00%0.00%4.80%- 3.80%- 5.80%1.20%- 2.30%4.70%

Average monthly return is the mathematical average of all monthly returns given above. Rate of…

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The average monthly return for Cola Co. is%. (Round to two decimal places.)

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 7QE

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Question

The following spreadsheet contains monthly returns for
Cola Co. and Gas Co. for 2013. Using these data,
estimate the average monthly return and the volatility for
each stock. (Click on the following icon in order to copy
its contents into a spreadsheet.)
Month
January
February
March
April
May
June
July
August
September
October
November
December
The average monthly return for Cola Co. is%. (Round to two decimal places.)
Cola Co.
- 6.80%
7.40%
-2.10%
4.30%
11.30%
1.40%
4.10%
- 0.60%
0.80%
1.90%
0.70%
- 2.90%
Gas Co.
- 3.00%
- 7.70%
0.20%
3.10%
- 1.00%
0.00%
4.80%
- 3.80%
- 5.80%
1.20%
- 2.30%
4.70%

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