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Question 3 You are given the following information regarding the historical returns on two assets: Year Investment X Investment Y 1 5% -2% 2 -8%
Question 3
You are given the following information regarding the historical returns on two assets:
Year | Investment X | Investment Y |
1 | 5% | -2% |
2 | -8% | 7% |
3 | 5% | 11% |
4 | 16% | -6% |
5 | 4% | 2% |
- Calculate the geometric returns of Investment X and Investment Y
- Calculate the covariance of Investment X and Investment Y
- Calculate the standard deviation of Investment X and Investment Y
- Calculate the correlation of Investment X and Investment Y (Total 4 points)
- Please do not calculate them in Excel! I need every step of calculating.
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