Question
1. For the following two stocks X and Y, the probability for each event is the same (33.33% each) X Y 0% 5% 2% 4%
1. For the following two stocks X and Y, the probability for each event is the same (33.33% each)
X Y
0% 5%
2% 4%
6% 2%
a. Compute the expected return and the standard deviation for stock X and Y.
b. What is the covariance between X and Y?
c. What is the correlation coefficient between X and Y?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
