Question: How to find the weighted deviation squared for returns and show process Covarianceisa statistical measure of thedegree to which two or more series move together
Covarianceisa statistical measure of thedegree to which two or more series move together . Weighted Weighted deviation deviation Return Return Probability x Probability x squared for squared for Return on A Return on B Return on A Return on8 5.00% 0.000506 0.002162 7.20% 0.000015 0.000101 1.50% 0.000454 0.006427 on B Probability 25% 60% 15% onA Good OK Bad 15% 10% 5% 20% 12% -10% 3.75% 6.00% 0.75% -10.70% J0.000972 50.008691:-me 10.50% 3.1225 standard deviation of A= 3.1225% Standard deviation of B: 9.3226% 1110.301 ^2x 0.031225] ^20.70] ^2x [0.093226] ^2)+2(0.3)(0.7)("O0027150"))
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