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company 1 company 2 company 3 company 4 market 1/1/2020 10% 10% 10% 10% 10% 12/1/2019 20% 40% 10% 40% 20% 11/1/2019 30% 30% 50%
company 1 | company 2 | company 3 | company 4 | market | |
1/1/2020 | 10% | 10% | 10% | 10% | 10% |
12/1/2019 | 20% | 40% | 10% | 40% | 20% |
11/1/2019 | 30% | 30% | 50% | 30% | 30% |
10/1/2019 | 30% | 50% | 30% | 20% | 40% |
9/1/2019 | 40% | 40% | 20% | 10% | 50% |
a, What is the correlation between company 1 and company 3?
- 0.50
- -0.40
- 0.34
- -0.05
b, What is the correlation between company 1 and company 4?
- 0.07
- -0.10
- 0.15
- -0.25
c, If you must hold company 1, which other company is a better option than the others to be added to your portfolio?
- Company 2
- Company 3
- Company 4
- All equally important
d, What is the beta of the company 2? (hint: check slope)
- 0.6
- 0.7
- 0.8
- 0.9
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