Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the correlation matrix you created, answer the following: Which security has the strongest positive relationship with the S&P 500 index? Why do you

image text in transcribed
Based on the correlation matrix you created, answer the following: Which security has the strongest positive relationship with the S&P 500 index? Why do you think this is the case? Which security has the strongest positive relationship with the risk-free rate? Why do you think this is the case? Which two individual stocks have the strongest positive relationship with each other? Why do you think this is the case? Question ) - Correlation Matrix 3 SP500 04 03 105 506 006 007 XOM GM VZ NVDA rf SPSOO 1 0.586818907 0.780199067 0.67019888 0.374226073 0.496564834 -0.197478733 0.586818907 1 0.498771212 0.395095972 0.434494017 0.07494982 -0.016131172 XOM 0.780199067 0.498771212 1 0.555884636 0,438975638 0.269980807 -0.162814667 GM 0.67019888 0.395095972 0.555884636 1 0.151598503 0.341513302 -0.182237452 V2 0.374236073 0.434494017 0.438975638 0.151598503 1 0.101300401 -0.018907935 NVDA 0.496564834 0.07494982 0.269980807 0.341513302 0.101300401 1 -0.315543556 -0.197478733 -0.016131172 -0.162814667 -0.182237452 -0.018907935 -0.315543556

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Dark Side Of Valuation

Authors: Aswath Damodaran

3rd Edition

0134854101, 9780134854106

More Books

Students also viewed these Finance questions

Question

Why is helium needed in a heliumneon laser? Why not just use neon?

Answered: 1 week ago