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Investment A has a return of .05 in bear markets and .09 in bull markets. Investment B has a return of 0 in bear markets
Investment A has a return of .05 in bear markets and .09 in bull markets. Investment B has a return of 0 in bear markets and .16 in bull markets. The probability of a bear market is 3/4 and the probability of a bull market is 1/4.
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To find the covariance of the two stocks returns you can use the following formula CovarianceA B ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
