The annual returns for two firms are listed below. Please calculate the variance and standard deviation...
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• The annual returns for two firms are listed below. Please calculate the variance and standard deviation of returns for each firm. Also, please calculate the covariance and correlation of returns between these firms. Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Firm A -0.118 -0.301 0.146 0.477 0.696 0.262 0.546 0.627 0.509 -0.163 Firm B 0.229 -0.047 0.303 0.695 0.264 0.368 0.778 0.050 0.407 -0.486 • The annual returns for two firms are listed below. Please calculate the variance and standard deviation of returns for each firm. Also, please calculate the covariance and correlation of returns between these firms. Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Firm A -0.118 -0.301 0.146 0.477 0.696 0.262 0.546 0.627 0.509 -0.163 Firm B 0.229 -0.047 0.303 0.695 0.264 0.368 0.778 0.050 0.407 -0.486
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Solution year x X7 20160118 0229 03861 0149 00271 00007 03010047 05691 0324 03031 00919 01725 00022 ... View the full answer
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Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
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