Could you explain how to use Covariance?
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6*. Estimates of the expected returns, standard deviations and correlation coefficients for the possible rates of return on three stocks are:
*Please see attachment.
(b) If equal investments are made in all three stocks, what is the expected return and the standard deviation of the return from the portfolio?
v(w) = 1/9 (102 + 122 + 42 + 2 x 12 x 4x (-1.00) + 2 x 10 x 4x (-0.5) + 2 x 10 x 12 x (0.5) *Please see attachment
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Solution Summary
The expert explains the covariance. The expected returns are estimated.
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Please see the attachment.
Posting ID: 426719 Subject: Statistics Topic: All Topics Level: Year 1
Could you explain how to use Covariance?
Credit Value: 3 Deadline: September 28, 2011, 8:19 pm
6*. Estimates of the expected returns, standard deviations and correlation coefficients for the possible rates of return on three stocks are:
*Please see attachment.
(b) If equal investments are ...
Purchase this Solution
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