Question
Based on the different states of the economy below, calculate mean, standard deviation, and variance for both stocks. In addition, calculate the covariance and correlation
Based on the different states of the economy below, calculate mean, standard deviation, and variance for both stocks. In addition, calculate the covariance and correlation between the two stocks.
| state of the economy | probability | CSCO stock | MSFT stock |
|---|---|---|---|
| 1 | 10% | 7% | 5% |
| 2 | 25% | 13% | 12% |
| 3 | 20% | 14% | 16% |
| 4 | 30% | 22% | 19% |
| 5 | 15% | -26% | -20% |
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The Little Book Of Market Myths: How To Profit By Avoiding The Investing Mistakes Everyone Else Makes
Authors: Kenneth L. Fisher
1st Edition
1118445015, 978-1118445013
