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answer covarience and correlation and show working out Based on the followin information State of Econom Bear Normal Bull Probability of State of Econo 30
answer covarience and correlation and show working out
Based on the followin information State of Econom Bear Normal Bull Probability of State of Econo 30 65 05 Return on Stock J _025 _133 _213 Retum on Stock K r 029 057 087 Do not round intermediate calculations and round Calculate the expected retum for each of the stocks. our answers to 2 decimal laces. e. ., 32.16 Expected return Stock A Stock B Calculate the standard deviation for each of the stocks round our ansrs to 2 decimal laces. e. ., 32.16 Standard deviation Stock A Stock B Do not round intermediate calculations and hat is the covariance between the retums of the two stocks? (Do not round intermediate calculations nd round our answer to 6 decimal laces. e. ., 32.161616 Covariance hat is the correlation between the retums of the two stocks? nd round our answer to 4decimal laces. e. ., 32.1616 Correlation Do not round intermediate calculations
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