The following data is given regarding three investments Gov Bond, Zam Beef and Zam Chicken. Predicted rate
Question:
The following data is given regarding three investments Gov Bond, Zam Beef and Zam Chicken.
Predicted rate of return (%) | ||||
State | Probability | GOV BOND | ZAM BEEF | ZAM CHICKEN |
Boom | 0.3 | 10 | 25 | 14 |
Normal | 0.45 | 10 | 22 | 18 |
Recession | 0.25 | 10 | 12 | -20 |
A. Find the CV (Coefficient of Variation) of each of the three investments and fill in the table below (?). Show all your calculations after the table.
B. Find the COV (Covariance) of all two-asset combinations and fill in the table below (?). Show all your calculations after the table.
C. Find the correlation coefficient of all two-asset combinations and fill in the table below (?). Show all your calculations after the table.
GOV BOND | ZAM BEEF | ZAM CHICKEN | |
PART A. | ? | ? | ? |
PART B. | GOV BOND | ZAM BEEF | ZAM CHICKEN |
GOV BOND | ? | ? | |
ZAM BEEF | ? | ||
ZAM CHICKEN | |||
PART C. | GOV BOND | ZAM BEEF | ZAM CHICKEN |
GOV BOND | ? | ? | |
ZAM BEEF | ? | ||
ZAM CHICKEN |
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker