What are the expected returns on the us and brazil

Assignment Help Basic Computer Science
Reference no: EM131763551

Assume that over the next year you believe there are only 2 possible states of the world, each with probability 50%. The table below gives the returns on the US and Brazilian equity markets in these two scenarios.

Prob. US ret. Brz. Ret.

50% -10% -15%

50% 20% 35%

a. What are the expected returns on the US and Brazil (in percent)?

b. What are the volatilities (standard deviations) of the returns on the US and Brazil (in percent)?

c. What is the covariance between the returns on the US and Brazil?

d. What is the correlation between the returns on the US and Brazil?

Reference no: EM131763551

Questions Cloud

Same after-tax return : What interest rate on a 7-year corporate bond of equal risk would provide you with the same after-tax return? (Round your final answer to two decimal places.)
Prepare a journal entry to properly dispose of any balance : Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account
How many units of regular sales could be lost : The above cost information is based on 11,400 units. A distributor has offered to buy 3,100 units at a price of $39 per unit.
What expectations are presented in the policy : Describe the firm's Corporate Ethics and Corporate Social Responsibility Policy. What expectations are presented in the policy?
What are the expected returns on the us and brazil : a. What are the expected returns on the US and Brazil (in percent)? b. What are the volatilities (standard deviations) of the returns on the US and Brazil.
What would happen if the population was left unattended : What would happen if the population was left unattended and not managed properly?Identify the characteristics of the selected special population.
What is the cost of goods sold in given operation : Youngstown Rubber reports the following data for its first year of operation. Direct materials used= $711,000 Cost of goods manufactured= $680,600.
Record the entries to record the purchase of stock : Record the entries to record (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of the 1,000 shares
What is the value of a 3-year : What is the value of a 3-year, risk-free bond with a coupon rate of 4% (annual coupons) and a face amount of $1,000?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  A development lifecycle for an ids system

Write a 1-2 page paper on a development lifecycle for an IDS system, including the following: Inception Configuration Deployment

  Describe enterprise resource planning system

You are on your second interview for a position in an Information Services Department. You will be presenting to a group of your peers, so they can see if you have good presentation skills.

  Create an object of doublestack

In the main, create an object of DoubleStack, test the methods.

  How do things change if we also account for ruin

How do things change if we also account for ruin

  Write a mips program that will alter an array of 100 doubles

Write a MIPS program that will alter an array of 100 doubles. No input or output is required. We will assume somebody else did it. Your program modifies the elements in the array as described

  Select three imaging tools and explain their functions

Choose three imaging tools and describe their functions, including those of their subtools. Provide examples of how these tools might be used to enhance your professional or personal photos.

  Display and calculate the rectangle area

getArea - This function should accept the rectangle's length and width as arguments, and return the rectangle's area. The area is calculated by multiplying the length by the width.

  Develop an outline of the project plan for the testing

As part of the disaster recovery planning at any medium-sized business, you have been asked to develop a project plan to test the backup of production systems

  What is the slowest sram read access time

What is the slowest SRAM read access time that does not require the designer to stretch the E-clock of the HCS12?

  Create an entity-relationship diagram

1. Create an entity-relationship diagram (ERD) based on the following information. A building contains one or more labs and a lab is contained in one building. A lab contains one or more computers and a computer is contained in one lab.

  Fran''s virtual fruit stand

Use the concepts and scenario from Assignment 1 to help Fran's Virtual Fruit Stand increase the functionality of its online shopping cart. When a customer checks out, the shopping cart must store the required data pertaining to each item the custo..

  Design an algorithm to find the shortest path from v to w

Design an algorithm to find the shortest path from v to w that contains exactly k edges. Note that the path need not be simple.

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