The standard deviation of return on investment A is 19%, while the standard deviation of return...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The standard deviation of return on investment A is 19%, while the standard deviation of return on investment B is 14%. If the covariance of returns on A and B is 0.004, the correlation coefficient between the returns on A and B is The standard deviation of return on investment A is 19%, while the standard deviation of return on investment B is 14%. If the covariance of returns on A and B is 0.004, the correlation coefficient between the returns on A and B is
Expert Answer:
Answer rating: 100% (QA)
The correlation coefficient is 01504 The correlation coefficient measures the strength and direction ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements,...
-
The standard deviation of return on investment A is 28%, while the standard deviation of return on investment B is 23%. If the correlation coefficient between the returns on A and B is 0.248, the...
-
13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
-
Mary is 30 years old and married to Mark, age 36. Mark passed away on January 30, 2021. Mark was unemployed and had no income in 2021 due to his illness. Marys seven-year-old daughter, Jenny, lived...
-
Discuss the manufacturing process or processes suitable for making the products listed below. Explain whether the products would require additional operations (such as coating, plating, heat...
-
The long-run aggregate supply curve is vertical at the economys potential output level. Why is the long-run aggregate supply curve located at this output rather than below or above potential output?
-
8. The Aviation Security Improvement Act (ASIA) states that the FAA can refuse to divulge information about airport security. The FAA interprets this to mean that it can withhold the data in spite of...
-
Paige Metals Company has two departments-cutting and Grinding-and manufactures three products. Budgeted unit production for the coming year is 21,000 of Product T, 36,000 of Product M, and 30,000 of...
-
The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased...
-
For the given pair of functions, write the composite function and its derivative in terms of one input variable. 6 h(p)=p(t)=1+36-05 P O h(p(t)) = 6 -5 Oh(p(t)) = h(p(t)) = 6 1+3e dh 3 ; 1+6e-45F 6...
-
Find the quotient. 5(cos 220 +isin 220) 2(cos 115 + i sin 115) (cos 105 + i sin 105) (cos 105+ i sin 105) C. (cos 335 + i sin 335) D. 10 (cos 335 + i sin 335) A. B.
-
A partial sum of an arithmetic sequence is given. Find the sum. 25 (5-8n) n = 0 S = X
-
Summarize this article using this very straight forward example: EXAMPLE: Krcmar, M. & Lachlan, K. (2009). Aggressive Outcomes and Videogame Play: The Role of Length of Play and the Mechanisms at...
-
1. Solve the following ODE's, also determine the basis of y(x) (a) y"+5y+6y= 10e2 (b) y"+4y4e-2x (c) y"+4y+4y = 80e2, y(0) = 6, y'(0) = 1 (d) y"+4y+5y = 10e 2. Solve the following IVP y" + y = 2e,...
-
What are the major International Economic Problems and Challenges facing the United States and the World today? Briefly Trace the Historical Development of International Trade. Why is International...
-
An ice-cream manufacturer, Sweet Treat, Inc., was sued because eight people died of a newly identified foodborne infection that was linked back to their Melon-Cream products. Sweet Treat, Inc., had a...
-
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
-
A portfolio manager is considering an immunization strategy for a client. The portfolio manager is concerned that the portfolio must be rebalanced very frequently in order to match the duration of...
-
A British portfolio manager is considering investing in Japanese government bonds denominated in yen. What are the major risks associated with this investment?
-
What are the implications of the efficient market hypothesis to both stock selectors and market timers?
-
Consider the following variant of Nim called Split-Nim, which is played with heaps of tokens as in Nim. Like in Nim, a player can remove some tokens from one of the heaps, or else split a heap into...
-
In \(m \times n\) Cram (see Exercise 1.4), a rectangular board of \(m \times n\) squares is given. The two players alternately place a domino either horizontally or vertically on two unoccupied...
-
The impartial game Gray Hackenbush is played on a figure consisting of nodes and edges that are connected to these nodes or to the ground (the ground is the dashed line in the pictures below). A move...
Study smarter with the SolutionInn App