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
Related questions
Question
![QUESTION 3
The following table contains the return on equity (ROE) and share price of ABC Corporation:
Return on Equity (%)
Share price ($)
10
12
20
3.1 Calculate the mean of the return on equity and the mean of share price;
3.2 Calculate the variance of the return on equity and the variance of share price;
3.3 Calculate the standard deviation of the return on equity and the standard
deviation of share price;
3.4 Caleculate the covariance between the retum on equity and share price. Is the
relationship between the return on equity and share price negative? Why or why not?
3.5 Calculate the coefficient of correlation between the return on equity and share
price. Is the relationship between return on equity and share price weak? Why or why
not?
3.6 In order to boost share price, would you recommend a strategy that aims at
improving return on equity? Why or why not?
2508](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe530699f-ed47-41ee-938c-cc1eb16b1abe%2Fbd2ae71c-ed0b-480e-b1fd-b6d6e183995a%2Fbyzszjw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 3
The following table contains the return on equity (ROE) and share price of ABC Corporation:
Return on Equity (%)
Share price ($)
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 Caleculate the covariance between the retum on equity and share price. Is the
relationship between the return on equity and share price negative? Why or why not?
3.5 Calculate the coefficient of correlation between the return on equity and share
price. Is the relationship between return 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 return on equity? Why or why not?
2508
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![Elementary Statistics: Picturing the World (7th E…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
![Introduction to the Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman