1.Estimate the average daily return of each fund using the arithmetic average method. (EXCEL) 2. Calculate the standard deviation of each fund (EXCEL) 3. Calculate the correlation between the two funds 4. Calculate the covariance between the two funds using a) Excel function, Covariance.S and b) using formula (Correlation multiplied by standard deviations of both funds.
1.Estimate the average daily return of each fund using the arithmetic average method. (EXCEL) 2. Calculate the standard deviation of each fund (EXCEL) 3. Calculate the correlation between the two funds 4. Calculate the covariance between the two funds using a) Excel function, Covariance.S and b) using formula (Correlation multiplied by standard deviations of both funds.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 2FPE
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this is a finance question. the arithmetic average is not going to be the total sum divided by n ( ex:2546/8) if you can't answer it, please just reject the question
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