Find the correlation of assets A and B if the standard deviation of A is 4 and standard deviation of asset B is 2. The covariance of asset A and B is 1.8268.
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Find the correlation of assets A and B if the standard deviation of A is 4 and standard deviation of asset B is 2. The covariance of asset A and B is 1.8268.
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- Matt Peters wishes to evaluate the risk and return behaviors associated with various combinations of assets V and W under three assumed degrees of correlation: perfectly positive, uncorrelated, and perfectly negative. The expected return and standard deviations calculated for each of the assets are shown in the following table: Asset Expected return, r Standard deviation), σ V 9% 14 W 11% 20% If the returns of assets V and W are perfectly positively correlated (correlation coefficient=+1), describe the range of (1) expected return and (2) standard deviation associated with all possible portfolio combinations. b. If the returns of assets V and W are uncorrelated (correlation coefficient=0),describe the approximate range of (1) expected return and (2) standard deviation associated with all possible portfolio combinations. c. If the returns of assets V and W are perfectly negatively correlated (correlation coefficient=−1),…Assume that you have obtained the following information for Asset A: Rate of Return Probability 5.5% 25% 7.25% 55% 11% 20% Compute the expected rate of return for Asset A, using the information provided in thechart above Assume that the standard deviation of the expected returns for Asset A is 1.87%. With information and the expected rate of return that you calculated for Asset A in Part A of this problem, compute the co-efficient of variation for Asset A.For a set of positively correlated data, you calculate that 84% of the variation in the dependent variable is explained by variation in the independent variable. What is the correlation coefficient(r)? (round to 3 decimal places)
- Given the choice between two assets with standard deviations of 18.10% each, a return for asset A of 16.40% and a return for asset B of 17.20%, a rational investor would choose: A. asset B. B. either asset. C. asset A.The following provides information regarding Assets X and Y. Calculate the expected rate of return, variance, standard deviation, and coefficient of variation for the two assets. Which asset is a better investment?You have data on the following assets: asset Expected return Standard DeviationA 15.0% 21.0%B 15.5% 20.2%C 18.0% 25.0% Calculate the coefficient of variation for each of the assets. Which one is the best investment option?
- q4- What can be used to analyse the relationship between two categorical or qualitative variables? Choose all that apply. Select one or more: a. Scatterplots b. Cramer's Coefficient c. Correlation coefficient d. Contingency tablesCalculate: - Standard Deviation - Beta - CovarianceWhich one of the following statements regarding the coefficient of determination is NOT correct? a. If the correlation coefficient (r) is 0.845 then the coefficient of determination is 0.714 b. As the correlation coefficient approach zero, the coefficient of determination increases rapidly. c. The coefficient of determination measures the proportion of changes in the dependent variable that can be explained by the independent variable. d. The coefficient of determination will always give a result between 0 and +1.
- The expected value, standard deviation of returns, and coefficient o below.) \table[[Asset A],[Possible Outcomes,Probability,Returns (%)Determine the median and the values corresponding to the first and third quartiles in the fol-lowing data.4647494951535454555559The value of a correlation is reported to be r = 0.25. How is this interpreted?