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the correlation coefficient is 0.560879 this is the responce for the first part excel or by hand works the same for me.. Intro The following
the correlation coefficient is 0.560879
this is the responce for the first part
excel or by hand works the same for me..
Intro The following table shows historical beginning-of-year adjusted close prices for two stocks. 1 Year Stock A Stock B 2 2011 3 2012 4 2013 5 2014 6 2015 7 2016 8 2017 9 2018 10 2019 38.69 579.11 35.37518.61 40.75 567.39 48.68 587.27 47.38 582.32 42.61 637.57 48.02668.89 56.05 766.91 64.93 850.29 Attempt 1/10 for 12 pts. Part 2 Assume that the historical average returns, standard deviations and covariance will hold into the future. What is the Sharpe ratio of the optimal risky portfolio 3+ decimals Submit 0 2019 64.93 850.29 Attempt 1/10 for 12 pts. Part 1 Calculate the annual returns. What is the correlation coefficient? Correct Stock A Stock B 0.0858 12 Year 13 2011 -0.1045 C3/C2-1 14 2012 15 2013 16 2014 17 2015 18 2016 19 2017 0.0941 0.1946 0.03504 0.02671 0.00843 0.0949 0.127 0.04912 0.1465 0.1521 -0.1007 0.1672 20 20180.1584 0.1087C10/C9-1 21 22 Avg. return0.0733 0.0519 AVERAGE(C13:C20) 23 Variance 0.015071 0.00547 0.561 0.00631 VAR.S(C13:C20) -COVARIANCE.S(B13:820,C13:C20) CORREL(B13:820,C13:C20) 24 Covar ] Step by Step Solution
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