FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

using the data in the following table, estimate the average return and volatility for each stock, covariance between the stock as well as the correlation

using the data in the following table, estimate the average return and volatility for each stock, covariance between the stock as well as the correlation btween these two stocks.

Year 2007 2008 2009 2010 2011 2012

stock A -10% 20% 5% -5% 2% 9%

stock B 21% 7% 30% -3% -8% 25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

2. Summarize research on the physical development of the brain and possible implications for teaching.

Answered: 1 week ago

Question

★★★★★
J&J Snack Foods Corp. is a national manufacturer and distributor of snack foods and frozen beverages. Among its brands are ICEE, SuperPretzel, and Cinnabon CinnaPretzel. Adapted versions of the...

Answered: 1 week ago

Question

★★★★★
(ADOPTED) Safe and Sound Travel operates a ferryboat that takes tourists on sight-seeing tours in the Hundred Islands of Pangasinan. The company adjusts its accounts at the end of each month. The...

Answered: 1 week ago

Question

★★★★★
You own a 4%, 8 year to maturity bond which is selling for 90.397. You are concerned that the market rates of interest may increase by 1%. A) Using McCauley duration calculate the approximate change...

Answered: 1 week ago

Question

★★★★★
Elliott is quite the golfer and one day while playing a round of golf with some friends, he whacks his tee-shot into someone's back yard and hits the homeowner on the head with his golf ball. The...

Answered: 1 week ago

Question

★★★★★
Book: An Intro to Combustion 4th ed. by Turns and Haworth Rank these fuels in decreasing order of reactivity: H2, CH4, CO. For a given equivalence ratio, plot (qualitatively) the product gas...

Answered: 1 week ago

Question

★★★★★
a) Based on your understanding, what is product decision? (3 marks) (CLO1:PLO1:C2) b) Draw & explain about the 'Product Life Cycle' (12 marks) (CLO2:PLO1:C2)

Answered: 1 week ago

Question

★★★★★
Q1 The following monthly budgeted data are available for the Stark Company: Sales Variable expenses Contribution margin Product A Product B Product C $500,000 $300,000 $900,000 300,000 210,000...

Answered: 1 week ago

Question

★★★★★
Air at 80 and 14.5 psia flows into a hair dryer and is heated by an electrical heating element. Hot air at 176 leaves the dryer through a 2 inch diameter outlet at a volume flow rate of 1.51 ft3/s...

Answered: 1 week ago

Previous Question Next Question