You are given the following information state of economy, Ask an Expert

Finance

You are given the following information: State of Economy Probability of State of Economy Return on Stock J Return on Stock K Bear .30 −.025 .029 Normal .65 .133 .057 Bull .05 .213 .087 Calculate the expected return for each of the stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Expected return Stock J 8.96 % Stock K 5.01 % Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) Standard deviation Stock J 7.70 % Stock K 1.53 % What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places (e.g., 32.161616).) Covariance What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places (e.g., 32.1616).) Correlation

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92648590

Have any Question?Write your Review or question?

Related Questions in Financial Management

Assignment - evaluating sensitivity to riskyou may do this

Assignment - Evaluating sensitivity to risk You may do this case individually or with one other person. Select three companies from different industries. Each company must have stock prices continuously available for Mar ...

1 activities of a company that require the spending of cash

1) Activities of a company that require the spending of cash are known as: A) Uses of cash. B) Cash on hand. C) Cash receipts. D) Sources of cash. E) Cash collections. 2) Relationships determined from a firm's financial ...

1 in week four the focus was on analysis tools for

1. In week four, the focus was on analysis tools for determining solutions. In week five, we discussed groups and you also completed an assignment on analysis tools used for groups/teams. This week, one of the topics is ...

Part 1 conduct internet research sources must be documented

Part 1. Conduct Internet research, (sources must be documented using MLA format), and write a brief analysis of the current status of the U.S. economy. Include current values and trends for at least three of the followin ...

Assignmentthe purpose of this assignment is to allow you

Assignment The purpose of this assignment is to allow you the chance to evaluate the role of social responsibility in society. After you complete this assignment, you will analyze a written article, be able to ascertain ...

Assignmentp6-8nbsprisk-free rate and risk

Assignment P6-8 Risk-free rate and risk premiums The real rate of interest is currently 3%; the inflation expectation and risk premiums for a number of securities follow. Inflation expectation Security Premium Risk pr ...

Assume that hos could issue a zero coupon bond at an annual

Assume that HOS could issue a zero coupon bond at an annual interest rate of 4 percent with semiannua compounding for 20 years. If HOS receives $2,264.45 for the bond, how much would it have to pay at the maturity date?

Group projectinstructionyou and your team members should

Group Project Instruction: You and your team members should choose a problem statement and apply statistical techniques to solve it. The following step by step instruction will guide you to complete this activity: Step 1 ...

Please respond to the followinga justify whether the

Please respond to the following: a) Justify whether the standard deviation or covariance is the most significant measurement when adding a risky asset to an already highly risky portfolio. Provide support for your justif ...

In a minimum of two pages not counting the title and

In a minimum of two pages (not counting the title and reference pages), address how you would respond to the following points: Do you believe Carl is aware that he is a follower as well as the first shift supervisor? If ...

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

Recent Questions

Ask Financial Management Expert