Consider the performance of a stock fund and a bond fund, based on the state of the economy. State of Economy Probability Stock Fund: Rate of Return Bond Fund: Rate of Return Boom 0.2500 0.4500 0.0500 Normal Growth 0.4500 0.1300 0.0700 Recession 0.2750 -0.1500 0.0750 Severe Recession 0.0250 -0.4000 -0.0500 Required: Using the information in the table above, first calculate the mean, variance, and standard deviation of the stock and bond funds. Then discover the covariance and correlation between these two funds.
Consider the performance of a stock fund and a bond fund, based on the state of the economy. State of Economy Probability Stock Fund: Rate of Return Bond Fund: Rate of Return Boom 0.2500 0.4500 0.0500 Normal Growth 0.4500 0.1300 0.0700 Recession 0.2750 -0.1500 0.0750 Severe Recession 0.0250 -0.4000 -0.0500 Required: Using the information in the table above, first calculate the mean, variance, and standard deviation of the stock and bond funds. Then discover the covariance and correlation between these two funds.
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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Consider the performance of a stock fund and a bond fund, based on the state of the economy. | |||
State of Economy | Probability | Stock Fund: Rate of Return | Bond Fund: Rate of Return |
Boom | 0.2500 | 0.4500 | 0.0500 |
Normal Growth | 0.4500 | 0.1300 | 0.0700 |
Recession | 0.2750 | -0.1500 | 0.0750 |
Severe Recession | 0.0250 | -0.4000 | -0.0500 |
Required: | |||
Using the information in the table above, first calculate the mean, variance, and standard deviation of the stock and bond funds. Then discover the |
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