In the following table, you will find annual return data for six high-tech companies between the...

 

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In the following table, you will find annual return data for six high-tech companies between the years 1997 and 2007. Use the information below to compute the variance - covariance matrix of the returns. A B C DE F G H 1 Data for 6 High-Tech Companies 2 MSFT 3 1997 4 1998 36.67% 122.82% 5 1999 INTC 0.20% 61.43% 195.09% 14.44% 63.51% -38.38% CSCO 41.54% DELL 21.92% IBM GOOG 26.13% 22.50% 62.27% 73.38% 117.89% -1.27% 45.15% 7.80% 6 2000 21.39% 28.42% 1.30% 81.17% 24.27% 38.14% 7 2001 45.36% -7.44% 21.89% 19.83% 10.73% 54.48% 8 2002 20.19% 48.27% 9.11% -10.21% -11.92% 26.82% 9 2003 -8.94% -11.28% 12.65% 13.77% 7.06% -6.24% 10 2004 27.02% 12.85% 12.08% 32.55% -7.55% 123.03% 11 2005 -11.64% 2.42% -17.13% -6.48% 1.31% 15.48% 12 2006 20.29% 6.90% 3.62% 50.12% -5.54% 19.92% 13 2007 34.08% 22.21% 33.46% 84.40% 5.71% 62.76% 14 15 Beta 0.80 16 Mean returns 29.24% 0.95 20.68% 0.65 0.85 0.85 1.40 25.02% 31.64% 15.34% 43.87% <=AVERAGE(G3:G13) In the following table, you will find annual return data for six high-tech companies between the years 1997 and 2007. Use the information below to compute the variance - covariance matrix of the returns. A B C DE F G H 1 Data for 6 High-Tech Companies 2 MSFT 3 1997 4 1998 36.67% 122.82% 5 1999 INTC 0.20% 61.43% 195.09% 14.44% 63.51% -38.38% CSCO 41.54% DELL 21.92% IBM GOOG 26.13% 22.50% 62.27% 73.38% 117.89% -1.27% 45.15% 7.80% 6 2000 21.39% 28.42% 1.30% 81.17% 24.27% 38.14% 7 2001 45.36% -7.44% 21.89% 19.83% 10.73% 54.48% 8 2002 20.19% 48.27% 9.11% -10.21% -11.92% 26.82% 9 2003 -8.94% -11.28% 12.65% 13.77% 7.06% -6.24% 10 2004 27.02% 12.85% 12.08% 32.55% -7.55% 123.03% 11 2005 -11.64% 2.42% -17.13% -6.48% 1.31% 15.48% 12 2006 20.29% 6.90% 3.62% 50.12% -5.54% 19.92% 13 2007 34.08% 22.21% 33.46% 84.40% 5.71% 62.76% 14 15 Beta 0.80 16 Mean returns 29.24% 0.95 20.68% 0.65 0.85 0.85 1.40 25.02% 31.64% 15.34% 43.87% <=AVERAGE(G3:G13)

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Anwers To calculate the variancecovariance matrix of the returns we first need to calculate the returns for each company over the 11year period The returns are calculated as the difference between the ... View the full answer