Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 5. the excel file correlation matrix data contains

5. The Excel file Correlation Matrix Data contains monthly return data for four (4) stocks....

60.1K

Verified Solution

Question

Finance

image

5. The Excel file Correlation Matrix Data contains monthly return data for four (4) stocks.

  1. Compute the Correlation Matrix for the four (4) stocks.
  2. All other things being equal, which pair of stocks would reduce portfolio risk the most?
  3. All other things being equal, which pair of stocks would reduce portfolio risk the least?
Month 1 2 N 3 4 5 6 7 8 9 10 11 12 13 14 IBM 4.71% -2.26% -12.17% -5.97% 6.20% -18.01% 9.19% -0.27% 0.60% 8.19% -4.63% -6.09% -1.46% -2.34% -3.42% -30.09% 16.97% 4.92% -7.72% 8.27% -5.51% 3.83% EPB -2.32% -2.51% -8.29% -6.60% 5.07% 6.98% 7.68% -5.62% 7.18% 4.00% 6.50% 5.37% 3.22% -4.04% -6.77% -0.33% 8.53% 5.15% 7.53% -1.11% 6.91% 1.13% TEVA 7.45% -1.77% 2.06% 3.84% 10.67% -0.58% 2.40% -1.74% 0.98% 5.03% 8.22% -3.98% 3.45% 1.07% 2.58% 4.46% -4.79% -1.70% 5.52% 2.84% -4.98% -1.45% HPQ 4.98% -7.14% -6.56% -5.31% -6.23% 3.93% 4.12% -3.23% 4.09% 4.72% -8.27% 0.15% -9.28% -5.42% -3.32% -11.48% 9.30% -2.56% 1.87% 11.19% 0.54% 1.57% 15 16 17 18 19 20 21 22

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students