c) Calculate the covariance and correlation of coefficient for the above stock.d) Is the above stock being a good combination in the portfolio? Justify. Note: Type clearly ans no QUESTION 4: RISK & RETURNAisyah, a new investor cannot decide whether to invest in Stock Media Prima or StockAstro, or in a portfolio which is a combination of both stocks. she has approached RHBsecurities and the firm has provided her with the following information.Probability (%)Expected return (%)Stock Media PrimaStock Astro301315201413201512301611Using these stocks, she has identified two investment portfolio alternatives:AlternativesPortfolio180% of Astro and 20% of Media Prima240% of Media Prima and 60% of Astro

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Answered: Calculate the covariance and…

Calculate the covariance and correlation of coefficient for the above stock. d) Is the above stock being a good combination in the portfolio?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

c) Calculate the covariance and correlation of coefficient for the above stock. d) Is the above stock being a good combination in the portfolio? Justify. Note: Type clearly ans no

Definition Definition Statistical measure used to assess the strength and direction of relationships between two variables. Correlation coefficients range between -1 and 1. A coefficient value of 0 indicates that there is no relationship between the variables, whereas a -1 or 1 indicates that there is a perfect negative or positive correlation.

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