Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Finance


Home >> Basic Finance

You are attempting to determine whether the price of Dell computers is related to the price of Apple computers. Over the course of a year, you observe the following prices: (Assume this is just a sample of prices rather than the entire population)

Dell Apple $1000 ........ $2000

$1200 ........$2100

$1300 ........$2400

$1250 ........$2500

$1100 .......$2050

A.) What is the mean price for each type of computer? 

B.) What is the covariance between the price of Dell and the price of Apple? 

C.) What is the variance in the price of Dell 

D.) What is the variance in the price of Apple 

E.) What is the correlation between Dell and Apple prices? 

F.) You find out that the website from which you recorded the price of Apple computers overstated there price. How will your covariance change if Old Apple = 0.7* New Apple? (Use covariance rules to answer this question rather than calculating the value)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91897877
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

What are the implications of increased index investing for

What are the implications of increased index investing for market efficiency?

Use the bond-yield-plus-risk-premium method to estimate the

Use the bond-yield-plus-risk-premium method to estimate the cost of equity for Galveston Corp. A US Treasury bond yields 2.4%, the long-term bond for Galveston yields 4.4%, Galveston's beta is 1.2, the market risk premiu ...

You want to borrow 103000 from your local bank to buy a new

You want to borrow $103,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $2,350, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 54-month ...

Barely heroes corporation has bonds on the market with 145

Barely Heroes Corporation has bonds on the market with 14.5 years to maturity, an YTM of 9 percent, and a current price of $850. The bonds make semiannual payments. What must the coupon rate be on Barely Heroes' bonds?

Sam is a manager of a savings and loan and he is expecting

Sam is a manager of a savings and loan and he is expecting interest rates to increase in the near future. What type of mortgage would Sam most likely recommend the S&L to hold? shared-appreciation mortgage, 15 year term. ...

Question - a evaluate the coefficients of a linear

Question - a. Evaluate the coefficients of a linear regression equation (i.e., the intercept and slope) for projecting the trend of NPM's annual receipts for 2000 to 2007. Provide a complete specification for the linear ...

1 assume that company a wants to take-over company b

1) Assume that Company A wants to take-over Company B. Determine the enterprise Value of company B? Can Company A afford to buy Company B? Additional information Company A stock price 6.80 AED per share in 2017 and 6.90 ...

Stock in the abc corporation was contributed to the london

Stock in the ABC Corporation was contributed to the London School of Economics and Business, a public school in the United Kingdom. The basis in the stock was $1,000, but its fair market value was $1,500 at the time of t ...

Explain how the company newmans own brand fulfills the

Explain how the company Newman's Own brand fulfills the definition of a business for profit and a non-profit business at the same time. Consider in the response the functions of business, entrepreneurship and production ...

You would like to retire in 39 years the expected rate of

You would like to retire in 39 years. The expected rate of inflation is 01.00% per year. You currently have a standard of living that requires $7,442 of monthly expenses. Assuming you want to maintain the same standard 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved