Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. given the returns and probabilities for the three

Given the returns and probabilities for the three possible states listed here, calculate the covariance...

80.2K

Verified Solution

Question

Accounting

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 0.10 and 0.17, respectively. Probability Return(A) Return(B) Good 0.35 0.30 0.50 OK 0.50 0.10 0.10 Poor 0.15 -0.25 -0.30

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

Accounting
1.2K views

Equipment was acquired at the beginning of the year at a cost of$562,500. The...

Electrical Engineering
1.2K views

What is considered high and low power factor? Can you give four examples of appliances that...

Geometry
1.2K views

What is the value of cos given that 5 4 is a point on the...

Basic Math
1.2K views

The function below shows the cost to attend the fair if you ride r rides....

Calculus
1.2K views

Write the general formula for following alternating series in the form an 10 10 5...

Accounting
1.2K views

Question 1 (10 marks)The following account balances were found for Celtics Ltd. at the beginning...

Accounting
1.2K views

some one help me i have done almost all of it but i dont understand...

Accounting
1.2K views

Comprehensive Problem Bug-Off Exterminators Bug-Off Exterminators provides pest control services and sells extermination products manufactured...

Accounting
1.2K views

Laverne purchased a new piece of equipment to be used in its new facility. The...

Accounting
1.2K views

What would be the net cash flows after debt service in year 3? ...

Finance
1.2K views

just need help with a reply to this post. thank you in advance! ...

Accounting
1.2K views

ControlBaileys Medical Supplies also manufactures Hoyer lifts along with its wheelchairs for paralysed patients. The...