Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Recall that the correlation coefficient is a single value that captures the direction and extent of linear association between 2 random variables (securities). The formula for measuring covariance is equal to the correlation coefficient (rho) multiplied by the standard deviation for security1 multiplied by the standard deviation of security2.

Based on the Summary Output of Excel Regression (aka Analysis of Variance (ANOVA)) output listed below answer the following problems:
5a. Determine the Correlation of Determination (r squared):
5b. Determine the Correlation coefficient "r" (rho symbol = ):
5c. Determine (find out) the Covariance (formula given above) between GM and S&P500. Note: the Covariance of an asset with itself is equal to its Variance. The standard deviation (sigma symbol = ) is equal to the square root of the variance.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M928823

Have any Question? 


Related Questions in Basic Finance

Define par face value coupon rate coupon payment and

Define par ( face) value, coupon rate, coupon payment, and current yield. What are call provisions and convertible provisions, and how do they affect the interest rates on newly issued securities?

Discuss or define briefly the following terms and

Discuss or define briefly the following terms and concepts: means of payment, store of value, unit of account, barter, monetary aggregates, liquidity, nonfinancial debt, electronic funds transfer system, and risk.

Commercial paper credit guarantees explain why investors

Commercial Paper Credit Guarantees: Explain why investors that provided guarantees on commercial paper were exposed to much risk during the credit crisis.

Everrest incs stock has a 53 chance of producing a 1425

Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a -4.25% return. What is the firm's expected rate of return?

What does investment spending consist ofhow is investment

What does investment spending consist of? How is investment spending related to the interest rate? Which is more volatile, consumption or investment? Which makes up a larger component of GDP?

Problema manager checked production records and found that

Problem A manager checked production records and found that a worker produced 195 units while working 50 hours. In the previous week, the same worker produced 144 units while working 40 hours. a. Compute Current period p ...

Capital-budgeting criteriathe net present value npv of a

Capital-Budgeting Criteria The net present value (NPV) of a project is a measure of the difference between the project's value and its cost. The internal rate of return (IRR) is another measure of the project's attractiv ...

Choose three of the stocks - two within the same industry

Choose three of the stocks - two within the same industry plus one additional stock - from the Company Selection and Stock Watch completed in module 03 and then locate interest rates on two other investments that are not ...

For this assignment you will examine correlation and

For this Assignment, you will examine correlation and bivariate regression testing. To prepare for this Assignment: Review this week's Learning Resources and media program related to regression and correlation. Using the ...

Part aemu electronics is an electronics manufacturer

Part A Emu Electronics is an electronics manufacturer located in Box Hill, Victoria. The company's managing director is Shelly Chan, who inherited the company from her father. The company originally repaired radios and o ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate