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State Price Probability Dividend Realized return E[r] R-Rexp ^2 Pi*(R-Rexp)^2 1 47,00 0,15 10 0,14 0,0955 0,04 0,002 0,000297038 2 44,50 0,15 10 0,09 0,0955

State Price Probability Dividend Realized return E[r] R-Rexp ^2 Pi*(R-Rexp)^2
1 47,00 0,15 10 0,14 0,0955 0,04 0,002 0,000297038
2 44,50 0,15 10 0,09 0,0955 -0,01 0,000 0,000004538
3 43,50 0,30 10 0,07 0,0955 -0,03 0,001 0,000195075
4 45,00 0,40 10 0,10 0,0955 0,00 0,000 0,000008100
E[r] 0,0955 Variance 0,000504750
St.d. 0,022466642
State Realized return E[r] R-Rexp ^2 Pi(R-Rexp)^2
1 -0,0700 0,0860 -0,1560 0,024336 0,003650
2 0,1300 0,0860 0,0440 0,001936 0,000290
3 0,1500 0,0860 0,0640 0,004096 0,001229
4 0,0800 0,0860 -0,0060 3,6E-05 0,000014
E[r] 0,0860 Variance 0,005184
St.d. 0,072000
Covariance
Correlation

How to calculate covariance?

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