You are given the following return probability distribution for Stock X and Y: Normal market 0.5...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are given the following return probability distribution for Stock X and Y: Normal market 0.5 10% 20% Probability Stock X Stock Y Bear market 0.2 10% 5% Bull market 0.3 20% 10% What is the return correlation between Stock X and Y?
Expert Answer:
Answer rating: 100% (QA)
To calculate the return correlation between Stock X and Stock Y you can use the following formula fo... View the full answer
Related Book For
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
Posted Date:
Students also viewed these corporate finance questions

You are given the following data: From the above data, assume that you calculated Stock X's beta coefficient to be 0.56. a. Determine the arithmetic average rates of return for Stock X and the NYSE...

You are given the following means, standard deviations, and correlations for the annual return on three potential investments. The means are 0.12, 0.15, and 0.20. The standard deviations are 0.20,...

You are given the following information in relation to Olivet Ltd. Required: You are required to comment on the financial position of Olivet Let as at 20X5. Calculate any ratios you feel necessary....

Find a value of x such that 3 1 [ a = [,7 a .  dt  dt. t 1/4

An abrasive cutoff wheel has a diameter of 5 in, is 1/16 in thick, and has a in bore. It weighs 5 oz and is designed to run at 12 000 rev/min. If the material is isotropic and = 0.20, find the...

Which of the following transactions or activities would be counted in your countrys GDP? Explain your answers. a. A transportation company acquires a fleet of secondhand vehicles. b. The same...

(a) Draw an implementation diagram for a constant vector function F = (F 7 , F 6 , F 5 , F 4 , F 3 , F 2 , F 1 , F 0 ) = (1, 0, 0, 1, 0, 1, 1, 0) using the ground and power symbols in Figure 37(b)....

On October 31, 2014, the balances of the accounts appearing in the ledger of Acorn Interiors Company, a furniture wholesaler, are as follows: Prepare the October 31, 2014, closing entries for Acorn...

There is no ideal personality in the workplace and we all have different personalities as individuals. How about organizations? Do organizations also have various personalities as a whole? If so,...

PROJECT STEPS 1. Gudrun Duplessis is a manager in the Alanis Parks Department. Gudrun is compiling spending data in preparation for a city bond offering for park funding. She wants to use Excel to...

For Physics students. The kinetic energy of a relativistic particle is given by 1 K = (y1)mc where Y= Here m is the constant mass of the particle, v its

Given the Maths Function definition below for a mathematical function a(n) you are required to write two Java methods both methods will be in the same class. An iterative method which calculates...

What are the main challenges involved in implementing public health information technology projects? Describe recent advances in how information is managed and communicated and implications for...

Draw communication diagram from the following sequence diagram? Admin Examiner 4: return Status 9: Sendinvite() 10:return Confirmation 11: Send Result() 12:return Status Student 2: return 1: Prepares...

3 Write Python code using Regular Expression to validate the address base on the below requirements. Below is a correct Format of the Ethereum Blockchain Address: 1. An ETH address is an identifier...

Describe an efficient algorithm that, given an unsorted array A[1..n], counts the number of distinct elements in A, i.e., only counts each element once no matter how many times it appears. You can...

Gebeng engineering Sdn Bhd, in the 25% income tax bracket, is considering the purchased of a new GasLiquid Phase separator that will yield benefits of RM300000 for year 1, RM400000 for year 2,...

1. Below is depicted a graph G constructed by joining two opposite vertices of C12. Some authors call this a "theta graph" because it resembles the Greek letter 0. a. What is the total degree of this...

Let r be a binomial random variable representing the number of successes out of n trials. (a) Explain why the sample space for r consists of the set {0, 1, 2, . . . , n} and why the sum of the...

Police response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene (based on...

How large is a wolf pack? The following information is from a random sample of winter wolf packs in regions of Alaska, Minnesota, Michigan, Wisconsin, Canada, and Finland (Source: The Wolf by L. D....

A 0.167g sample of an unknown acid requires 27.8 mL of 0.100 M NaOH to titrate to the equivalence point. Elemental analysis of the acid gives the following percentages by mass: 40.00% C, 6.71% H,...

Use the dipole moments of HF and HCl (given at the end of the problem) together with the percent ionic character of each bond (Figure 10.10) to estimate the bond length in each molecule. How well...

Use average bond energies together with the standard enthalpy of formation of C(g) (718.4 kJ/mol) to estimate the standard enthalpy of formation of gaseous benzene, C 6 H 6 (g). (Remember that...