Returns on stocks X and Y are listed below:Period1Stock X7%Stock Y-4%21%10%3-2%4%-3%8%What is the (population) covariance of returns on the two stocks?Please round your answer to six decimal places.55%7%611%-1%75%-3% Returns on stocks X and Y are listed below:Period1Stock X5%Stock Y1%26%-3%3-2%6%-4%3%56%12%610%7%77%-5%Consider a portfolio of 40% stock X and 60% stock Y.What is the mean of portfolio returns?Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3percent as 0.123).

The data is given on the returns on stocks X and Y.XY7-4110-24-385711-15-3Sample size To find the…

Answered: What is the (population) covariance of…

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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Similar questions

What’s the correlation coefficient
Two variables are found to have a strong positive linear correlation. Pick the correct statement. An increase in one variable potentially causes a decrease in the other. An increase in one variable does not cause a decrease in the other. An increase in one variable does not cause an increase in the other. An increase in one variable potentially causes an increase in the other. An increase in one variable causes a decrease in the other. An increase in one variable causes an increase in the other.
What does a correlation coefficient of 2 indicate? There is a weak relationship between the two quantitative variables. It indicates a calculation error, as the correlation coefficient cannot be 2. There is a strong relationship between the two quantitative variables. It indicates a non-linear relationship between the two quantitative variables. There is no linear relationship between the two quantitative variables.
The condition of an independent variable being correlated to one or more other independent variables is referred to as nonlinearity. statistical significance. multicollinearity. linearity.
If r? value is positive, then the correlation coefficient can be positive or negative. TRUE FALSE
When two variables have a perfect linear relationship, the correlation coefficient is always 1. True False
8. Using the data in the following table, estimate (a) the average return and volatility for each stock, (b) the covariance between the stocks, and (c) the correlation between these two stocks. Year Stock A Stock B 2004 -10% 21% 2005 20% 7% 2006 5% 30% 2007 -5% -3% 2008 2% -8% 2009 9% 25%
You are looking at age of first marriage’s (independent variable) effect on the age of having a first child (dependent variable): You find that B0 = 2 and B1 = 1.2 Is the B0 useful in this case? Why or why not? For these variables, what does B1 mean in words?
What information is provided by r2? What are the primary uses of partial correlations?
Squaring the Pearson correlation coefficient (r2) tells us that
Arbor Systems and Gencore stocks both have a volatility of 44%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is 0.00. If the correlation is 0.00, the volatility of the portfolio is%. (Round to one decimal place.)
Doctors are testing a new antidepressant. A group of patients, all with similar characteristics, take part in the study. Some of the patients receive the new drug, while others receive the traditional drug. The data are shown in the contingency table below. What is the relative risk of insomnia for those who receive the new drug? Round to two decimal places. Insomnia New drug- 52. No insomnia-226—total=278 Traditional drug-36. 295—331(total) Total- 88. 521. ( no insomnia)—— total-609

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