Calculation of expected return, covariance, correlation...

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• Expected Return and Standard Deviation of Return

  Economy Booms 0.3 -0.02 0.21 -0.0031476 Total= -0.007068 Covariance= -0.007068 Correlation= -0.9992 =-0.007068/(0.0699x0.1012) The expected return and standard deviation of an equally weighted portfolio (

• Stock valuation/standard deviation/beta

  Asset A has an expected return of 7% and a standard deviation of 15%; asset B has an expected return of 10% and a standard deviation of 20%.

• Correlation and Covariance for manage risk and return.

  A positive covariance means that asset returns move together. A negative covariance means returns move inversely. One method of calculating covariance is by looking at return surprises (deviations from expected return) in each scenario.

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• Risk and return: Compare two Bank of Tinytown loans

  The expected return and standard deviation of returns for loan B are 12% and 20%, respectively. a) If the covariance between loan A and B is 0.015 (1.5%) what are the expected return and the standard deviation of this portfolio?

• 9.8 and 10.2 : Calculate the covariance and correlation between the returns on the two stocks.

  Calculate the expected return on each stock. b. Calculate the standard deviation of returns on each stock Calculate the covariance and correlation between the returns on the two stocks.

• Expected Return/Standard Deviation

  Calculate the expected return on each stock b. Calculate the standard deviation of returns on each stock. C. calculate the covariance and correlation between the returns on the two stocks.

• Could you explain how to use Covariance?

  426719 Could you explain how to use Covariance? 6*. Estimates of the expected returns, standard deviations and correlation coefficients for the possible rates of return on three stocks are: *Please see attachment.

• Calculating the Return, Variance and Standard Deviation

  Mean and geometric mean of the rate of return B. Variance and standard deviation of the rate of return C. Covariance and correlation coefficient of the rate of return. Please check the attached sheet for the solution.