Question: I.e. stock spills, etc.? How do you know : 2 (a) Calculate the COVARIANCE and CORRELATION matrix for all pairs. Display your answers in a

I.e. stock spills, etc.? How do you know : 2 (a)

I.e. stock spills, etc.? How do you know : 2 (a) Calculate the COVARIANCE and CORRELATION matrix for all pairs. Display your answers in a 4x4 table. (b) Verify that covariance between the asset and itself is equal to its variance (there may be some rounding error). (c) Verify that the correlation between all pairs of assets falls in the range [-1,1]. Verify that the correlation with an asset and itself is 1. (d) Do all assets move together? Interpret your results

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