Question: Please write new answer, in own words. Nikola's stock began trading on June 4, 2020. As of Dec 17, 2020, Nikola stock price have made

Please write new answer, in own words.

Nikola's stock began trading on June 4, 2020. As of Dec 17, 2020, Nikola stock price have made 0.1049% expected daily return with 5.884% standard deviation, while Tesla stock price have made 0.1853% expected daily return with 3.533% standard deviation. The correlation coefficient of those stock is -0.7718, which is extraordinarily opposite. Which stock would you suggest to invest? Why? Provide an investment strategy based on the statistics and portfolio investment theory.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid scale,...

Please create new answer and dont copy from other posts. Answer should lengthly and well written and in your own words. Tesla, Inc. is an American electric vehicle and clean energy company based in...

Please provide a page and a half paper to answer the following question: Major factors company should be aware of/evaluate regarding future investments projects. Use the attachments to answer the...

case study Summary: Bernard Madoff is an American financier. His firm (established in 1960) was responsible for helping his clients in investing large amounts of money in the New York Stock exchange....

NEED THIS ASAP PLEASE AND THANK YOU IN ADVANCE. HAVE A NICE DAY! The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. FedEx will produce superior financial returns for shareoners...

Hi. I'm asked to take this class for graduation but I don't know how to do any of this. Please help me! I'm already devastated with the whole concept and Finance is new to me. Idk what I'm doing in...

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Review case 4.1 Enron Corporation and Andersen, LLP . Complete the following Required questions related to this case, 1-5, in approximately 75 to 90 words. QUESTIONS TO BE ANSWERED: Review case 4.1...

: Write a program that displays the following output: Number 1 2 3 4 Square 1 4 9 16 25 Cube 1 8 27 64 125

What is a component unit? What does it mean when a primary government is financially accountable for a component unit?

3.4 If there is a scarce resource that is restricting sales, how will the business maximise its profit? Explain the logic of the approach that you have identified for maximising profit.

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

(Appendices) COST OF PURCHASES. Compass, Inc., purchased 1,000 bags of insulation from Glassco, Inc. The bags of insulation cost $4.25 each. Compass paid Turner Trucking $260 to have all 1,000 bags...

(Appendices) PURCHASES AND PURCHASES RETURNS. On November 6, Lubin Products purchased on credit 350 parts kits from Michaels Electronics for $38 per kit. Michaels paid $320 to have the kits shipped...

(Appendices) TERMS OF SHIPMENT AND RECORDING PURCHASES. On May 12, Digital Distributors received three shipments of merchandise. The first was shipped F.0.B. shipping point, had a total invoice price...