Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Given the returns and probabilities for the 3 possible states listed here, find out the covariance between the returns if Stock A & Stock B. for convenience, suppose that the expected returns of stock A & Stock B are 11.75% and 18% , respectively.

 

Probability  

Return(A)     

Return(B)

Good

0.35

0.30

0.50

OK

0.50

0.10

0.10

Poor

0.15    

-0.25

-0.30

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917610

Have any Question? 


Related Questions in Basic Finance

1 discuss how any company can become an mnc what are some

1. Discuss how any company can become an MNC. What are some of the options available to companies that allow them to use international markets and locations competitively? 2. Discuss some reasons why reductions in world ...

Does a large bolt-to-joint stiffness ratio increase or

Does a large bolt-to-joint stiffness ratio increase or decrease the possibility of fatigue failure of the bolt and why? Name at least three bolt, thread, or bolt and thread configurations which can improve the fatigue re ...

Build on the design you created in question to test the

Build on the design you created in Question to test the hypothesis that the effects of watching violent TV shows will be greater for boys than for girls. (What kind of design is this?) Question Design a randomized groups ...

1 define the following termsa optionb callc putd contingent

1. Define the following terms: a. Option b. Call c. Put d. Contingent claim 2. What are the similarities and differences between options and warrants? 3. What variables are important in determining call option prices? 4. ...

Finance question1 a bond has 5 years to maturity and has a

FINANCE QUESTION 1. A bond has 5 years to maturity and has a YTM of 8%. Its par value is $1,000. Its semiannual coupons are $50. What is the bonds current market price? (Show workings) 2. A bond currently sells for $1,03 ...

The following is from a business report by the reuters news

The following is from a business report by the Reuters news agency: "Online retailer Overstock.com . . . posted a surprise quarterly profit and its shares jumped as much as 34 percent to their highest level in almost two ...

An article in the economist magazine in 2010 observed the

An article in the Economist magazine in 2010 observed: "The euro's slide implies that the [euro] zone's members will be relying on foreign demand, not their own, to restore their fortunes." a. What does the article mean ...

Internationalization of human resources at obirenowned for

Internationalization of human resources at OBI Renowned for its orange big box stores, OBI is one of the leading DIY/home improvement retail brands in Europe. Founded in Germany in 1970, the company currently operates ab ...

Specialty retailerwith this case we review the cash flow of

SPECIALTY RETAILER With this case, we review the cash flow of several specialty retail stores. The companies reviewed and the year-end dates are as follows: 1. Abercrombie & Fitch Co. (52-week fiscal year ended January 2 ...

1 based on the following information construct a

1. Based on the following information, construct a traditional financial institution balance sheet AND a balance sheet including off-balance sheet items. Market value of assets = 200                                      ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen