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Currently, a share of Gunja Inc. is trading at 1,000, and Kospi index is 2000. We anticipate the following outcomes depending on future economic situation.
Currently, a share of Gunja Inc. is trading at 1,000, and Kospi index is 2000.
We anticipate the following outcomes depending on future economic situation.
Gunja | Kospi | probability | |
booming | 1,300 | 2,200 | 50% |
recession | 700 | 1,800 | 50% |
the variance of Gunja returns is ( ),
the variance of Kospi index returns is ( ),
the covariance between the two is ( ),
the beta of Gunja is ( ).
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