Question
You have done your research for the following investments and your friend has provided their expectations for the markets for next year. State of Economy
You have done your research for the following investments and your friend has provided their expectations for the markets for next year.
|
State of Economy | Probability of State of Economy |
Stock A |
Stock B |
Stock C |
Stock D |
T-bills |
Stock Market |
| Boom | .30 | 20% | 25% | 20% | -10% | 3% | 20% |
| Normal | .40 | 15% | 12% | 16% | 15% | 3% | 15% |
| Recession | .30 | -16% | -15% | -8% | 25% | 3% | -8% |
- Calculate the covariance and correlation of the returns for stock A and stock B. (2 marks)
- Calculate the covariance and correlation of the returns for stock A and stock C. (2 marks)
- Calculate the covariance and correlation of the returns for stock A and stock D. (2 marks)
- Calculate the covariance and correlation of the returns for stock B and stock C. (2 marks)
- Calculate the covariance and correlation of the returns for stock B and stock D. (2 marks)
- Calculate the covariance and correlation of the returns for stock C and stock D. (2 marks)
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Development Of Audit Findings Of A National Survey Of Healthcare Provider Units In England Evaluating Medical Audit
Authors: Yvette, Buttery
1st Edition
1898845018, 978-1898845010
