Consider the following information on the expected return for companies X and Y. Economy Boom Neutral Probability 0.24 0.43 Poor 0.33 X 37% 17% -27% Y 11% 25% 9% a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Company Y Expected value Standard deviation 7.28% 16.36% % % b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.) Correlation coefficient
Consider the following information on the expected return for companies X and Y. Economy Boom Neutral Probability 0.24 0.43 Poor 0.33 X 37% 17% -27% Y 11% 25% 9% a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Company Y Expected value Standard deviation 7.28% 16.36% % % b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.) Correlation coefficient
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 12PPS
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