Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 8, Problem 11PS
Summary Introduction
To calculate: The correlation, coefficient and co-variance of the stocks.
Introduction: The covariance and correlation is a statistical tool to measure the return of the stocks and establish a relation between returns and securities. This tells us about the relative changes of the securities. If the relation is positive then value of correlation and co-variance are positive.
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