Question
State of Economy Probabilty of state of economy Stock A Stock B Bear .27 -.02 .032 Normal .62 .136 .060 Bull .11 .216 .090 Based
| State of Economy | Probabilty of state of economy | Stock A | Stock B |
|---|---|---|---|
| Bear | .27 | -.02 | .032 |
| Normal | .62 | .136 | .060 |
| Bull | .11 | .216 | .090 |
Based on the following information:
Calculate the expected return for each of the stocks?
Calculate the standard deviation for each of the stocks.
What is the covariance between the returns of the two stocks?
What is the correlation between the returns of the two stocks?
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Enhancing Financial Inclusion Through Islamic Finance Volume II
Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag
1st Edition
3030399389,3030399397
