What is correlation coefficient between returns of two stock

Assignment Help Financial Management
Reference no: EM13728377

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0940. The variance of Willow is 0.1890, and the variance of Sky Diamond is 0.1210. What is the correlation coefficient between the returns of the two stocks?

Reference no: EM13728377

Questions Cloud

Compute the fair value of two nearest to expiration futures : Compute the ‘fair’ value of the two nearest to expiration futures contracts on the S&P500 Index (SPX) using SPX as the underlying asset. Did the futures contract settle above or below SPX?
Identify and describe a business crisis situation : Identify and describe a business crisis situation and the main leaders involved. It could be one that you have experienced or have read about
Determine the payback period of the project : A project requires an initial outlay of $100,000, and is expected to generate annual net cash inflows of $28,000 for the next 5 years. Determine the payback period of the project
Discuss the impact of maintaining that holding to the law : Discuss the impact of maintaining that holding to the law is sufficient to fulfill one's ethical duties and what it says about the law itself.
What is correlation coefficient between returns of two stock : The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0940. The variance of Willow is 0.1890, and the variance of Sky Diamond is 0.1210. What is the correlation coefficient between the returns of the two stocks?
What are the competitive challenges that google now faces : Google®, one of the leading global technology companies, has strategic planning at the heart of its success. What are the competitive challenges that Google now faces
Is it ethical when making a disciplinary decision : Is it ethical when making a disciplinary decision for absenteeism to be consistent with each employee or is ethical and morally correct to treat each employee as an individual
Calculate the value of fraziers stock : Frazier Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Frazier has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Frazier's stock.
What is the value of the fund today : Your brother, who is 6 years old, just received a trust fund that will be worth $24,000 when he is 21 years old. If the fund earns 0.10 interest compounded annually, what is the value of the fund today?

Reviews

Write a Review

Financial Management Questions & Answers

  Assume the risk free inflation adjusted interest rate

You have a contract that entitles you to receive $1 million 20 years from now. But can't wait and want your money now. You want to sell your contract. What is a fair price for it? Assume the risk free, inflation adjusted interest rate is 3% per year,..

  What was your capital gains yield on this investment

You purchased 200 shares of a stock for $28.33 a share and sold the shares one year later for $27.16 a share. Over the year, you received a total of $.90 in dividends per share. What was your capital gains yield on this investment?

  Biggest environmental challenges of the future

Explain in detail some of the biggest environmental challenges of the future for healthcare financial managers and provide an example of a financial report and then explain in detail the steps in the financial analysis process.

  Information summarizes charge and cost data

Assume that Dr. Jones’ patients pay an average 80 percent of charges. Also assume cost to charge ratios of 0.90 in Nursing, 0.80 in Lab, 0.50 in Pharmacy, and 0.70 in Radiology. What is the total profit earned on Dr. Jones’ patients?

  What is the future value-compounded quarterly

What is the future value of $1,400, placed in a saving account for four years if the account pays 0.10, compounded quarterly?

  what is Janjigians MVA

Over the years, Janjigian Corporation's stockholders have provided $15,250 of capital, part when they purchased new issues of stock and part when they allowed management to retain some of the firm's earnings. The firm now has 1,000 shares of commons ..

  Complete the financial reporting for each period

Complete the financial reporting for each period

  Evaluate the principal methods for assessing risk

Discuss the approach your organisation used to manage its new initiatives-especially new product developments and Discuss how your organisation evaluates projects within its overall portfolio.

  Why is the coefficient of variation a better risk measure to

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects?

  Evaluating a project-what is the npv of the project

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

  Compare the two cases of owning the stock versus

We buy a put option of Stefanic and associates. Its premium is $1 and the strike price is $34. The current market price is $40. If the price drops to $20, shall we exercise the put option? If not, why not , and If yes, why yes? Compare the two cases ..

  Forms of organizations is easiest to form-corporation

Which of the following forms of organizations is the easiest to form? Which of the following is a strength of a corporation? The 2002 law that established the Public Company Accounting Oversight Board (PCAOB) was called ________.

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