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average return, variance, standard deviation and beta

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Data:

period company return market index return
1 9 10
2 10 11
3 11 11
4 12 12

Find for the company and the market index (show the calculations):
a. average return
b. variance
c. standard deviation
d. beta
e. the intercept and the slope of the characteristic line.

https://brainmass.com/economics/regression/average-return-variance-standard-deviation-beta-302564

Solution Preview

The average return is found by summing the values and dividing by the number of values, N.
company return: 42/4 =10.5
market index return: 44/4 = 11

The variance is found by taking the the sum of the squares of the differences between the mean and each value and dividing by N-1.

The variance for the company's returns is therefore:
(9-10.5)^2+ (10-10.5)^2+(11-10.5)^2+(12-10.5)^2 / ...

Solution Summary

Given data, finding the average return, variance, standard deviation and beta.

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