Value of covariance between stock and bond funds

Assignment Help Financial Management
Reference no: EM131309831

Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.20 −38% −12% Mild recession 0.20 −26% 7% Normal growth 0.35 8% 3% Boom 0.25 46% 7% a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 4 decimal places.)

Mean return %

Variance

b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 4 decimal places.)

Covariance

Reference no: EM131309831

Questions Cloud

Describe the three most useful tasks that users can perform : Describe the three most useful tasks that users can perform with Microsoft Office (or a similar software suite) that they could not complete if they did not have the software.
What is the present value of the future? amounts : (Present value?) What is the present value of the following future? amounts?
How many members does class bagtype have : CIS242 Assignment- How many members does class bagType have? How many private members does class bagType have? How many constructors does class bagType have? How many constant functions does class bagType have?
How abstraction and encapsulation enable evolutionary change : Begin with a simple enhancement: charging a fee for every deposit and withdrawal. Supply a mechanism for setting the fee and modify the deposit and withdraw methods so that the fee is levied. Test your resulting class and check that the fee is com..
Value of covariance between stock and bond funds : Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.20 −38% −12% Mild recession 0.20 −26% 7% Normal growth 0.35 8% 3% Boom 0.25 46% 7% a. Calculate the values of mean return and var..
Compare and contrast needs based theories of motivation : Compare and contrast needs-based theories of motivation.- Which offers the most value to healthcare managers?
Create a c program that sorts a sequence of positive numbers : Create a C program that sorts a sequence of positive numbers using the bubble sort algorithm in an increasing or decreasing order based on the user's choice. The pseudo code for the bubble sort algorithm is shown below.
Strategic management and competitiveness : What factors make up this process?- How important is it to change, and what criteria determine the changes in a strategic management plan?
Implement a votingmachine class used for simple election : Extra credit if your program gives the nod to your favored party if the votes are tallied after 8 P.M. on the first Tuesday in November, but acts normally on all other dates.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd