What are the covariance and correlation between the returns

Assignment Help Finance Basics
Reference no: EM131129525

Based on the following information, calculate the expected return and standard deviation of each of the following stocks. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns on the twostocks?

476_m.jpg

Reference no: EM131129525

Questions Cloud

Some other computer software to construct a histogram : Use MINITAB or some other computer software to construct a histogram of the drying-time data in Exercise 115. The following are the drying times (minutes) of 100 sheets coated with polyurethane under various ambient conditions:
What could affect the beta of a stock : Is the beta of a stock static or dynamic? What could affect the beta of a stock?
Mark of a given class in a frequency distribution : A plot of the points (x,f), where x represents the class mark of a given class in a frequency distribution and f represents its frequency, is called a frequency polygon. Construct a frequency polygon using the data in Exercise 116.
Explan who would be the ideal candidate : In 300-500 words explan who would be the ideal candidate(s) to elicit information from during the requirements gathering and analysis phase? Explain why.
What are the covariance and correlation between the returns : Based on the following information, calculate the expected return and standard deviation of each of the following stocks. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns on the..
Describe how you would classify alcoa ethical work climate : Describe how you would classify Alcoa's ethical work climate. In your description, address which ethical criterion, as shown in Figure 5.1, was used by the company: egoism (self-centered), benevolence (concern for others), or principles (integrity..
Three software engineering layers on top of a layer : Figure 1.3 places the three software engineering layers on top of a layer entitled "a quality focus." This implies an organizational quality program such as total quality management. Do a bit of research and develop an outline of the key tenets of..
How would you sum up c.s. lewis argument : How would you sum up C.S. Lewis' argument in "The Inner Ring" in one or two sentences? Where does he state the argument directly? Can his argument apply to life in Christian circles as well as the broader society?
How many houses can be served by a water pipe : How many houses can be served by a water pipe that has a 5050-centimeterdiameter? What size of water pipe is needed for a new subdivision of 2560 houses

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine hopewell cash conversion cycle

Determine Hopewell's cash conversion cycle. Give an interpretation of the value computed in parta.

  Calculating risk premium

Suppose if WalMart has a beta of 1.1, current risk-free rate is 3.5%, average risk free rate over the last 70 years is 3.2 percent, and the expected return on the stock market is 12.3 percent,

  The ln partnership reported the following items of income

the ln partnership reported the following items of income and deductin during the current tax year revenues 200000 cost

  Calculate the weighted average cost of capital using 1 book

weighted average cost of capital. valie enterprises inc. has compiled the following investmentstype of capitalbook

  How sensitive is the npv to changes in the quantity sold

The necessary equipment can be purchased for $32.5 million and will be depre- ciated on a seven-year MACRS schedule. It is be- lieved the value of the equipment in five years will be $3.5 million.

  What is the profit or loss associated with copper

Gold sells for $325 per ounce and copper sells for $0.85 per pound. Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Copper?

  The housekeeping services department of abc hospital had

the housekeeping services department of abc hospital had 250000 in direct costs during 2006. these costs must be

  From the information below compute the average annual

1 from the information below compute the average annual return the variance standard deviation and coefficient of

  Because the weighted average given is always correct in our

because the weighted average given is always correct in our examples the measure of a required return why do firms not

  What is the effective rate of annual interest

An account earns 5% the first year, 7% the next 3 years, 8% the next 4 years and loses 3% each of the next 2 years.

  Teir nominal yield to maturity is 925 they pay interest

obrien ltds outstanding bonds have a 1000 par value and they mature in 25 years. their nominal yield to maturity is

  Describe the program provisions as an option

Describe the program provisions as an option. What is the asset? The exercise price?

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