The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select Stock A and Stock C, since the linear correlation coefficient for these two stocks is closest to 0. If your goal is to have one stock go up when the other goes down, you should select since the linear correlation coefficient for these two stocks Annual Rates of Returns Year 1 2 3 4 7 8 9 10 11 Stock A 0.480 0.046 0.126 0.316 -0.258 0.496 0.085 -0.044 -0.011 -0.181 -0.316 Stock B 0.091 0.106 0.137 -0.080 -0.032 -0.069 0.081 -0.019 0.069 0.079 0.276 Print Stock C Stock D 0.027 -0.121 1.320 0.491 0.149 0.057 -0.092 0.1 0.084 -0.036 0.068 -0.008 0.06 0.184 -0.064 0.014 -0.127 0.087 -0.045 0.146 0.079 0221 Done CCCCS Ď Stock A and Stock C Stock A and Stock B Stock Band Stock D Stock Band Stock C Stock A and Stock D Stock C and Stock D
The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select Stock A and Stock C, since the linear correlation coefficient for these two stocks is closest to 0. If your goal is to have one stock go up when the other goes down, you should select since the linear correlation coefficient for these two stocks Annual Rates of Returns Year 1 2 3 4 7 8 9 10 11 Stock A 0.480 0.046 0.126 0.316 -0.258 0.496 0.085 -0.044 -0.011 -0.181 -0.316 Stock B 0.091 0.106 0.137 -0.080 -0.032 -0.069 0.081 -0.019 0.069 0.079 0.276 Print Stock C Stock D 0.027 -0.121 1.320 0.491 0.149 0.057 -0.092 0.1 0.084 -0.036 0.068 -0.008 0.06 0.184 -0.064 0.014 -0.127 0.087 -0.045 0.146 0.079 0221 Done CCCCS Ď Stock A and Stock C Stock A and Stock B Stock Band Stock D Stock Band Stock C Stock A and Stock D Stock C and Stock D
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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Transcribed Image Text:The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the
two investments? Which two would you select if your goal is to have one stock go up when the other goes down?
Click the icon to view the table of annual rates of returns.
is
If your goal is to have low correlation between the two investments, you should select Stock A and Stock C, since the linear correlation coefficient for these two stocks is closest to 0.
If your goal is to have one stock go up when the other goes down, you should select
since the linear correlation coefficient for these two stocks
2
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Annual Rates of Returns
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Year
1
2
3
D
4
5
6
7
8
9
10
11
Stock A
-0.480
0.046
C
0.126
0.316
-0.258
0.496
0 085
-0.044
-0.011
-0.181
-0.316
Get more help.
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4
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Stock B
0.091
0.106
0.137
-0.080
-0.032
-0.069
F
0.081
-0.019
0.069
0.079
0.276
Print
V
%
5
Stock C
0.027
1.320
0.184
-0.064
0.014
-0.127
0.087
-0.045
0.146
0.079
0.221
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4
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Stock D O
-0.121
0.491
0.149
0.057
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0.1
0.084
-0.036
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0.068
-0.008
0.06
6
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Stock A and Stock C.
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Stock A and Stock B,
Stock B and Stock D,
Stock B and Stock C,
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Stock A and Stock D,
Stock C and Stock D.
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