covariance

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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3. The historical returns data for the past three years for Stock B and the stock market portfolio
are: Stock B: 24%, 0%, 24%, Market Portfolios: 10%, 12%, 20%. Calculate the covariance of
returns between Stock B and the market portfolio.
Required:
a) Computed the covariance of returns between Stock B and the market portfolio.
b) Computed the variance of the market portfolio returns.
Transcribed Image Text:3. The historical returns data for the past three years for Stock B and the stock market portfolio are: Stock B: 24%, 0%, 24%, Market Portfolios: 10%, 12%, 20%. Calculate the covariance of returns between Stock B and the market portfolio. Required: a) Computed the covariance of returns between Stock B and the market portfolio. b) Computed the variance of the market portfolio returns.
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