Based on the following information, calculate the expected return and standard deviation of each of the following
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Based on the following information, calculate the expected return and standard deviation of each of the following equities. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two equities?
Transcribed Image Text:
State of Economy Bear Normal Bull Return on A 0.063 0.105 0.156 Return on B -0.037 0.064 0.253
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Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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