Calculate the covariance between the returns of stock a

Assignment Help Finance Basics
Reference no: EM132801883

Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.09 and 0.18, respectively. (Round your answer to 4 decimal places. For example .1244)

Reference no: EM132801883

Questions Cloud

How effective is your local community : How effective is your local community in providing lifelong learning opportunities as described in your reading, research, and discussions?
What is the effective annual rate of todd loan : a. If the interest rate is 6 percent compounded monthly, how much can Todd afford to borrow to buy a car?
What is the journal entry for the transaction : The company uses straight-line method. In addition, the guaranteed residual value was $6,000. What is the journal entry for the transaction
Unit 18 Civil Engineering Technology Assignment : Unit 18 Civil Engineering Technology Assignment Help and Solution, Higher National Certificate Construction and the Built Environment - Assessment Writing
Calculate the covariance between the returns of stock a : Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B.
Explain the life challenges presented by the client : Post a brief description of the client you selected, including his or her demographic information and situational context. Then, explain the life challenges.
What is the dollar amount of dividends : What is the dollar amount of dividends that he received for owning the stock during the year? Round to two decimal places.
Determine the unadjusted rate of return : Assuming the asset has a five-year useful life and zero salvage value, determine the unadjusted rate of return
What is the expected return on m simon inc : If the expected return on the market is 0.15, then what is the expected return on M Simon Inc? Round to four decimal places.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the project payback period

Given the following cash flows, what is the project's payback period?

  Discuss the major factors for overdraft of a business

Gainsborough Fashions Ltd operates a small chain of fashion shops in North Wales. In recent months the business has been under pressure from its suppliers to reduce the average credit period taken from three months to one month.

  How much would you pay for stock

Given the expected earnings and dividends in problem1, if you expect a selling price of $110 and require an 8 percent return on this investment, how much would you pay for this stock

  Define and explore the freedom of information act

Confirm whether the FOIA and Privacy Acts are necessary to maintain government transparency and accountability to the public.

  Should the truck be leased or purchased

Should the truck be leased or purchased? Provide your decision based on NPV analysis.

  Determine to the nearest percent the irr projects

Determine to the nearest percent the IRR of the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $2.000 at the end of year 1, $5,000 at the end of year 2, and $8,000 at the end of year 3.

  What would the future and present values

What would the future and present values be if it was an annuity due?

  Question regarding the basic time value of money

It is a common fact that many lottery winners are "broke" sooner than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time?

  What tips can you give for communicating verbally

1. What tips can you give for communicating verbally? 2. How can you demonstrate leadership skills?

  What is the effect of transaction on shareholders wealth

What is wrong with tying management bonuses to earnings per share? What measure would you propose as a management performance metric?

  Recommendations or trading strategies

Answer as thorough as possible, Include an explanation of your recommendations or trading strategies.

  Your current supervisor has asked for your assistance with

your current supervisor has asked for your assistance with shredding some office documents. you have some understanding

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