Find out covariance between the two stocks, Financial Management

 The stocks of Microsoft and Apple have a correlation coefficient of 0.6.  The variance of Microsoft stock is 0.4 and the variance of Apple stock is 0.3.  What is the covariance between the two stocks?

 

Posted Date: 3/21/2013 2:00:57 AM | Location : United States







Related Discussions:- Find out covariance between the two stocks, Assignment Help, Ask Question on Find out covariance between the two stocks, Get Answer, Expert's Help, Find out covariance between the two stocks Discussions

Write discussion on Find out covariance between the two stocks
Your posts are moderated
Related Questions
Beta Beta is a measure of the market risk, or methodical risk, of a particular privacy or portfolio. Systematic risk defines any risk that influences the value of a huge numbe

What is the time value of money? The time value of money signifies that money you hold in your hand today is worth more than money you expect to receive in the future. Likewise

Q. Credit Standards for Formulation of Optimum Credit Policy? Credit Standards: - Credit standards are the essential criteria set for extension of credit to customers. Decision

What are the objectives of the Insurance Companies? Insurance companies: The main objective of insurance companies is to prevent individuals and firms (termed as policy-h

What is Inventory turnover The shortcoming of this ratio is that average calculation based on beginning and year-end inventory may not represent actual average in year. Other l

Weighted Aggregates Index   In a weighted aggregates index, weights are assigned according to their significance and consequently the weighted index improves the accuracy of the

Q. How are the HIBOR, HSI and HSI futures related? The HIBOR and HSI are contrariwise related. So futures on HIBOR and HSI are as well inversely related. Display

Q. Computation of Value of the Firm? Illustration:- EBIT                                                               = 50,000 10% Debentures

As the meaning of reform in a system, these reforms in corporate governance would make effective impacts over the process of audit in the context of auditor requirements and the cl

Application of Shareholder Value Maximization Framework   Factors affecting Shareholder's Value are: Capital Market Conditions Profitability à Includes factors li