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i need an answer only for question 10. Estimate the correlation between the two stocks. i left the full questions an information for your understanding.
i need an answer only for question 10. Estimate the correlation between the two stocks.
i left the full questions an information for your understanding.
For Questions 8 to 12, use the following realized annual returns on two stocks: Year End 2013 2014 2015 2016 ACY Returns RA -20% 10% -5% 50% BOC Returns RB 25% -2.5% 5% -10% 8. Calculate the historical average annual returns on the two stocks. Repeat for geometric average annual return. 9. Estimate the stocks' volatilities. 10. Estimate the correlation between the two stocks. 11. Construct a 95% confidence interval for the annual return on ACY. 12. The annual return on Treasury bills is 1.2%. Find the Sharpe ratio of BOCStep by Step Solution
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