Question: 1. time Returns on Project A Returns on Project B 1 39.00% -23.40% 2 122.00% -73.20% 3 57.00% -34.20% 4 19.00% -11.40% 5 70.00% -42.00%
1.
| time | Returns on Project A | Returns on Project B |
| 1 | 39.00% | -23.40% |
| 2 | 122.00% | -73.20% |
| 3 | 57.00% | -34.20% |
| 4 | 19.00% | -11.40% |
| 5 | 70.00% | -42.00% |
| 6 | 25.00% | -15.00% |
| 7 | 39.00% | -23.40% |
| 8 | 42.00% | -25.20% |
| 9 | -23.00% | 13.80% |
| 10 | -32.00% | 19.20% |
The expected return on project B is -21.48%
True
False
2.
The variance (=var.s) of project A returns is 19.51%
| time | Returns on Project A | Returns on Project B |
| 1 | 39.00% | -23.40% |
| 2 | 122.00% | -73.20% |
| 3 | 57.00% | -34.20% |
| 4 | 19.00% | -11.40% |
| 5 | 70.00% | -42.00% |
| 6 | 25.00% | -15.00% |
| 7 | 39.00% | -23.40% |
| 8 | 42.00% | -25.20% |
| 9 | -23.00% | 13.80% |
| 10 | -32.00% | 19.20% |
True
False
3.
The variance (=var.s) of project B returns is 7.02%
| time | Returns on Project A | Returns on Project B |
| 1 | 39.00% | -23.40% |
| 2 | 122.00% | -73.20% |
| 3 | 57.00% | -34.20% |
| 4 | 19.00% | -11.40% |
| 5 | 70.00% | -42.00% |
| 6 | 25.00% | -15.00% |
| 7 | 39.00% | -23.40% |
| 8 | 42.00% | -25.20% |
| 9 | -23.00% | 13.80% |
| 10 | -32.00% | 19.20% |
True
False
4.
The correlation of returns between project A and project b is -1.
| time | Returns on Project A | Returns on Project B |
| 1 | 39.00% | -23.40% |
| 2 | 122.00% | -73.20% |
| 3 | 57.00% | -34.20% |
| 4 | 19.00% | -11.40% |
| 5 | 70.00% | -42.00% |
| 6 | 25.00% | -15.00% |
| 7 | 39.00% | -23.40% |
| 8 | 42.00% | -25.20% |
| 9 | -23.00% | 13.80% |
| 10 | -32.00% | 19.20% |
True
False
5.
The Covariance between projects A and B is 4%
| time | Returns on Project A | Returns on Project B |
| 1 | 39.00% | -23.40% |
| 2 | 122.00% | -73.20% |
| 3 | 57.00% | -34.20% |
| 4 | 19.00% | -11.40% |
| 5 | 70.00% | -42.00% |
| 6 | 25.00% | -15.00% |
| 7 | 39.00% | -23.40% |
| 8 | 42.00% | -25.20% |
| 9 | -23.00% | 13.80% |
| 10 | -32.00% | 19.20% |
True
False
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