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, which two stocks should you select?**A. Stock B and Stock C B. Stock A and Stock C C. Stock A and Stock B **Annual Rates of Returns Table:**| Year | Stock A | Stock B | Stock C ||------|--------|--------|--------|| 1 | 0.031 | -0.468 | 0.115 || 2 | 1.495 | 0.045 | 0.130 || 3 | 0.208 | 0.123 | -0.161 || 4 | -0.072 | 0.308 | 0.303 || 5 | -0.016 | -0.254 | -0.074 || 6 | -0.144 | 0.484 | -0.041 || 7 | 0.099 | 0.043 | -0.075 || 8 | -0.051 | -0.043 | 0.008 || 9 | 0.095 | 0.105 | 0.094 || 10 | 0.090 | -0.176 | 0.104 || 11 | 0.250 | -0.308 | 0.295 | The table shows the annual return rates for three different stocks: A, B, and C, over an 11-year period. The goal is to identify pairs of stocks that either have a low correlation or show inverse performance trends.

Solution: Part a) The annual rates of return for 3 stocks namely, A, B and C are given. You are…

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? E Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, which two should stocks should you select? O A. Stock B and Stock C O B. Stock A and Stock C - X A Annual Rates of Returns OC. Stock A and Stock B Year Stock A Stock B Stock C 1 -0.468 0.031 1.495 0.115 2 0.045 0.130 0 208 -0.072 0.016 -0.144 3 0.123 0.161 0.308 - 0.251 4 -0.051 -0.004 -0.041 0.105 0.008 6 0.484 0.099 0.083 -0.051 -0.043 -0.011 -0.176 6. 0.165 0.094 10 0.090 0.104 11 0.250 -0.308 0.295

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? E Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, which two should stocks should you select? O A. Stock B and Stock C O B. Stock A and Stock C - X A Annual Rates of Returns OC. Stock A and Stock B Year Stock A Stock B Stock C 1 -0.468 0.031 1.495 0.115 2 0.045 0.130 0 208 -0.072 0.016 -0.144 3 0.123 0.161 0.308 - 0.251 4 -0.051 -0.004 -0.041 0.105 0.008 6 0.484 0.099 0.083 -0.051 -0.043 -0.011 -0.176 6. 0.165 0.094 10 0.090 0.104 11 0.250 -0.308 0.295

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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