prove that x and y are perfectly negatively correlated. 5.3 Given the following hypothetical end-of-period prices for shares of the Drill-On Corporation, Probability .15 End-of-period price per share 35.00 .10 42.00 .30 .20 .25 50.00 55.00 60.00 and assuming a current price of $50 per share: (a) Calculate the rate of return for each probability. What is the expected return? The variance of end-of-period returns? The range? The semi-interquartile range? (b) Suppose forecasting is refined such that probabilities of end-of-period prices can be broken down further, resulting in the following distribution: 142 Chapter 5: Objects of Choice: Mean-Variance Portfolio Theory .01 .05 .07 .02 .10 .30 .20 .15 .05 .05 Probability End-of-period price per share 0 35.00 38.57 40.00 42.00 50.00 55.00 57.00 60.00 69.00 Calculate and explain the change in the expected return, the range of returns, and the semi- interquartile range of returns. Calculate the semivariance of end-of-period returns. Why might some investors be concerned with semivariance as a measure of risk? prove that x and y are perfectly negatively correlated. 5.3 Given the following hypothetical end-of-period prices for shares of the Drill-On Corporation, Probability .15 End-of-period price per share 35.00 .10 42.00 .30 .20 .25 50.00 55.00 60.00 and assuming a current price of $50 per share: (a) Calculate the rate of return for each probability. What is the expected return? The variance of end-of-period returns? The range? The semi-interquartile range? (b) Suppose forecasting is refined such that probabilities of end-of-period prices can be broken down further, resulting in the following distribution: 142 Chapter 5: Objects of Choice: Mean-Variance Portfolio Theory .01 .05 .07 .02 .10 .30 .20 .15 .05 .05 Probability End-of-period price per share 0 35.00 38.57 40.00 42.00 50.00 55.00 57.00 60.00 69.00 Calculate and explain the change in the expected return, the range of returns, and the semi- interquartile range of returns. Calculate the semivariance of end-of-period returns. Why might some investors be concerned with semivariance as a measure of risk