Old MathJax webview

work out in excel please.

Asset 2 Asset 1 T Market Condition Return Market Condition Probability Probability Return Good 4 Good 16 1 4 1 2 Average 6 12 Average Poor 8 8 Poor 4 Asset 3 Asset 4 Market Condition Return Probability Rainfall Return Probability Good 20 1 4 1 Plentiful 16 Average 14 12 Poor Average Light 8 4. 8 Refer to the text, Chapter 4: Problem 1 B. Solve for the covariance between Asset 2 and Asset 3 El QUESTION 6 Refer to the text, Chapter 4: Problem 1 B. Solve for the correlation between Asset 2 and Asset 3 P*(E-Er)^2 4 Market condition Return Probability Asseti Good 16 1/4 4 Average 12 1/2 6 Poor 8 1/4 2 expected return 12 0 4 con AwN 8 2.828427 1 asset3 asset4 2 1/2 4 1/2 5 1/2 6 1/2 1/2 7 1/3 8 1/3 1/3 9 1/3 1/3 10 1/4 1/4 11 5555555 (rl-rexpected)^2 (ri-rexpected)^2*pi P (E-Er)^2 1/2 18 ri-rexpected -2 4 Market co Return Probability Asset2 Good 1/4 Average 6 1/2 Poor 8 1/4 expected retuern 12 0 0 0 13 Bm NO 4 2. 4 14 22 1/2 4.743416 0 8 2 15 std 1.414214 16 17 18 ri-rexpected (ri-rexpected)^2 36 (ri-rexpected) 2 Tipi 9 19 6 20 Market co Return Probability Asset3 P (E-Er)^2 Good 20 1/4 5 9 Average 14 1/2 7 2 Poor 8 1/4 2 4 expected retuern 14 15 0 0 0 -6 36 9 21 22 23 3.872983 0 72 18 std 4 242641 24 25 26 27 28 29 Market co Return Probability Asset4 P*(E-Er)^2 Good 16 1/3 5.333333 5 1/3 Average 12 4 0 Poor 8 1/3 2.666667 5 1/3 expected retuern 12 10 2/3 3.265986 1/3 C 30 31 32