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1) Given is the sample data for shares of 2 companies for the past 8 years. Year Times ltd Heights ltd 1 0.7831 -0.1623 2
1) Given is the sample data for shares of 2 companies for the past 8 years.
| Year | Times ltd | Heights ltd |
| 1 | 0.7831 | -0.1623 |
| 2 | 0.4266 | -0.1924 |
| 3 | -0.2612 | 0.6213 |
| 4 | -0.2471 | 0.4444 |
| 5 | 0.2553 | 0.1548 |
| 6 | 05621 | 0.3189 |
- Calculate the AAR of each share of the 2 companies.
- Calculate the Standard deviation of each share of the 2 companies.
- Calculate Covariance between shares of the 2 companies.
- Calculate the correlation coefficient
- Comment on the correlation coefficient. Would diversification help?
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The Theory Of Interest
Authors: Friedrich A. Lutz
2nd Edition
1138539074,1351472836
