Calculate the correlation coefficient between two securities

Assignment Help Financial Management
Reference no: EM131072698

The Covariance between Stock A and Stock B is 0.02. The Standard deviation of Stock A is 12 % and that of Stock B is 25 %.

Calculate the correlation coefficient between the two securities.

Reference no: EM131072698

Questions Cloud

Why is the latter type of locks preferable : Why is the latter type of locks preferable?
Write a query that displays the order id and order date : Write a query that displays the order id and order date for any orders placed during the month of May, 2014. Do this using the BETWEEN clause. Format the date field as mm/dd/yy and use a heading of "Ordered".
Does it occur only under specific circumstances : Where does this issue occur? In other words, is it more common in urban areas, in some parts of the country, in some countries, etc.? When does this issue occur? Does it occur only under specific circumstances? If so, what are these?
The communication competency about united technologies : After reading the Communication Competency about United Technologies, identify the key behaviors demonstrated by senior leaders to reinforce the company's diversity programs.
Calculate the correlation coefficient between two securities : The Covariance between Stock A and Stock B is 0.02. The Standard deviation of Stock A is 12 % and that of Stock B is 25 %. Calculate the correlation coefficient between the two securities.
Identify and describe an ethical dilemma or issue : Identify and describe an ethical dilemma or issue created by some organizational change effort with which you are familiar. How was the ethical problem handled? What, if anything, would you do differently?
Changing an organization direction so difficult : Rosabeth Kanter, a leading authority on change, stated that trying to change an organization is like trying to teach elephants to dance. Why is changing an organization's direction so difficult?
Capital structure shift change the firm cost of equity : Lauterbach Corporation uses no debt, its beta is 1.0, and its tax rate is 40%. However, the CFO is considering moving to a capital structure with 30% debt and 70% equity. If the risk-free rate is 5.0% and the market risk premium is 6.0%, by how much ..
Continued to invest her accumulated amount : Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annually for ..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd