Consider the following information on the expected return for companies X and Y. Economy Boom Neutral Probability 0.24 0.43 Poor 0.33 X 37% 17% -27% Y 11% 25% 9% a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Company Y Expected value Standard deviation 7.28% 16.36% % % b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.) Correlation coefficient

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Consider the following information on the expected return for companies X and Y.
Economy
Boom
Neutral
Probability
0.24
0.43
Poor
0.33
X
37%
17%
-27%
Y
11%
25%
9%
a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at
least 4 decimal places. Round your final answers to 2 decimal places.)
Company X
Company Y
Expected value
Standard deviation
7.28%
16.36%
%
%
b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.)
Correlation coefficient
Transcribed Image Text:Consider the following information on the expected return for companies X and Y. Economy Boom Neutral Probability 0.24 0.43 Poor 0.33 X 37% 17% -27% Y 11% 25% 9% a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Company Y Expected value Standard deviation 7.28% 16.36% % % b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.) Correlation coefficient
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