Question
(a) Mydin as an investor want to look at the correlation between these two shares in different sector. The following are the monthly rates of
(a) Mydin as an investor want to look at the correlation between these two shares in different sector. The following are the monthly rates of return for Metronic Bhd and Degem Berhad during six-month.
| Month | Mechatronic Bhd | Degem Bhd |
| July | -0.04 | 0.07 |
| August | 0.06 | -0.02 |
| September | -0.07 | -0.10 |
| October | 0.12 | 0.15 |
| November | -0.02 | -0.06 |
| December | 0.05 | 0.02 |
i. Compute average monthly rate of return, standard deviations, covariance, correlation coefficient for each share. (18 mark)
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
978-1259307416
