Question
Thereturnsoftwoassetsunderfourpossiblestatesofnaturearegivenbelow: State of nature Probability Returnonasset1 Returnonasset2 1 0,10 5% 0% 2 0,30 10% 8% 3 0,50 15% 18% 4 0.10 20% 26% 1. Calculatethestandarddeviationofthereturnonasset1andasset2
- Thereturnsoftwoassetsunderfourpossiblestatesofnaturearegivenbelow:
Stateofnature ProbabilityReturnonasset1 Returnonasset2
1 | 0,10 | 5% | 0% |
2 | 0,30 | 10% | 8% |
3 | 0,50 | 15% | 18% |
4 | 0.10 | 20% | 26% |
1. Calculatethestandarddeviationofthereturnonasset1andasset2
11. Determinethecovariancebetweenthereturnsonassets1and2.
111. Whatisthecoefficientofcorrelationbetweenthereturnsonassets1and2?
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Financial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
12th Edition
0538478519, 9780538478519
