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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