Calculate the expected return of asset x

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Reference no: EM132594823

State of Economy probability of state X return Y return Good 0.10 0.220 0.100 Normal 0.50 0.100 -0.010 Poor

0.40

0.020

0.070

Expected Return of Y is E(RY) = 0.033000000

the Variance of Y is σ 2 Y = 0.001921000

the Standard Deviation of Y is σY = 0.043829214

a. Please calculate the Expected Return of Asset X. Be sure to show your work.

b. Please calculate the Variance and Standard Deviation of Asset X. Be sure to show your work.

c. Please calculate the Correlation Coefficient of Asset X and Asset Y. Be sure to show your work.

Reference no: EM132594823

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