QUESTION 3 The following table contains the return on equity (ROE) and share price of ABC Corporation: Share price ($) Return on Equity (%) 1101 10 12 20 3.1 Calculate the mean of the return on equity and the mean of share price; 3.2 Calculate the variance of the return on equity and the variance of share price; 3.3 Calculate the standard deviation of the return on equity and the standard deviation of share price; 3.4 Calculate the covariance between the retum on equity and share price. Is the relationship between the return on equity and share price negan ive? Why or why not? 3.5 Calculate the coefficient of correlation between the return on equity and share price. Is the relationship between returm on equity and share price weak? Why or why not? 3.6 In order to boost share price, would you recommend a strategy that aims at improving retun on equity? Why or why not?
QUESTION 3 The following table contains the return on equity (ROE) and share price of ABC Corporation: Share price ($) Return on Equity (%) 1101 10 12 20 3.1 Calculate the mean of the return on equity and the mean of share price; 3.2 Calculate the variance of the return on equity and the variance of share price; 3.3 Calculate the standard deviation of the return on equity and the standard deviation of share price; 3.4 Calculate the covariance between the retum on equity and share price. Is the relationship between the return on equity and share price negan ive? Why or why not? 3.5 Calculate the coefficient of correlation between the return on equity and share price. Is the relationship between returm on equity and share price weak? Why or why not? 3.6 In order to boost share price, would you recommend a strategy that aims at improving retun on equity? Why or why not?
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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