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The following are monthly percentage price changes for four market indexes. Compute the following. a . Average monthly rate of return for each index. Round
The following are monthly percentage price changes for four market indexes.
Compute the following.
a Average monthly rate of return for each index. Round your answers to five decimal places.
DJIA:
S&P :
Russell :
Nikkei:
b Standard deviation for each index. Do not round intermediate calculations. Round your answers to four decimal places.
DJIA:
S&P :
Russell :
Nikkei:
Covariance DJIA S&P :
Covariance S&P Russell :
Covariance S&P Nikkei:
Covariance Russell Nikkei:
Correlation DJIA S&P :
Correlation S&P Russell :
Correlation S&P Nikkei:
Correlation Russell Nikkei:
calculations. Round your answers to five decimal places.
Expected return S&P and Russell :
Standard deviation S&P and Russell :
Expected return S&P and Nikkei:
Standard deviation S&P and Nikkei:
Since S&P and Russell have a strong Select $ correlation, meaningful reduction in risk they are combined.
Since S&P and Nikkei have a strong
Jcorrelation, meaningful reduction in risk Select if they are combined.
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