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Consider two risky assets with prices S 1 (0) = 100, S 2 (0) = 150 the price is: S 1 (1), S 2 (1)
Consider two risky assets with prices S1(0) = 100, S2(0) = 150 the price is:
S1(1), S2(1) = 80,250 (probability 0.25)
= 90,150 (probability 0.5)
= 120,200 (probability 0.25)
- Compute mean and standard deviations (mean1, sd1) and (mean2, sd2) for the two assets?
- Compute the correlation coefficient between the two assets
NOTE: Please provide calculations with formula
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