User Account

All Pages

How do calculate the covariance returns

Assignment Help Financial Accounting
Reference no: EM132645740

Portfolios with more than one asset:

Question 1: 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 11.75 percent and 18 percent, respectively.

                 probability          Return (A)          Return (B)

Good             .35                      .30                   .50

OK                 .50                      .10                  .10

Poor                .15                     -.25                 -.30

Reference no: EM132645740

Questions Cloud

Discuss how the instrument is scored : Identify the data sources or instrumentation for each of the variables in your study. Justify the use of each data source or instrument in your study.
Calculate expected return and standard deviation for stock : You are comparing stock A to stock B. Calculate expected return and standard deviation for each stock, and base your choice on return/risk characteristics.
Discussing a workable plan to improve the emotional skills : Develop a 1,400- to 1,750-word paper discussing a workable plan to improve the emotional skills and competencies of people in one of the team member's place.
Differences between policies-procedures-standards : Many organizations don't understand the differences between policies, procedures, standards and guidelines.
How do calculate the covariance returns : How do calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A
Organization and cyber security plan : Research a company or organization and their Cyber Security Plan to address these below issues.
Completing spring pre-registration : Draw Activity Diagram showing the actions and events involved with student completing spring 2021 pre-registration for courses to attend a local public school
Find and calculate the npv and irr for each type of machine : Marvin Industries must choose between an electric-powered and a coal-powered. Calculate the NPV and IRR for each type of machine, and decide which to recommend
Calculate modified internal rate of return and npv : Calculate each project's payback period, net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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