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Your analyses of Atlas Ltd. and Crane Ltd have suggested that in the coming year the returns and the probabilities of their occurrence are expected
Your analyses of Atlas Ltd. and Crane Ltd have suggested that in the coming year the returns and the probabilities of their occurrence are expected to be as set out below.
Probability | Atlas (%) | Crane (%) |
.1 | -7 | -3 |
.2 | 4 | 6 |
.4 | 11 | 9 |
.2 | 6 | 2 |
.1 | -2 | 1 |
(i) Calculate the expected returns for Atlas and Crane
(ii) Calculate the variance for Atlas and Crane
(iii) Determine the standard deviation of returns for each company
(iv) Calculate the covariance of the companies' return
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