I am currently working on some practice problems to study for a test and need help setting up and understanding how to calculate them Use the following to answer questions 22-23 Idaho Slopes and Dakota Steppes are both seasonal businesses. IS is a downhill skiing factory, while DS is a tour company that specialized in walking tours and camping. the likely returns on each company over the next year is expected to be: economy idaho slopes dakota steppes strong downturn -10% 2% mild downturn -4% 7% slow growth 4% 6% moderate growth 12% 4% strong growth 20% 4% 22) the mean expected returns of Idaho Slopes and Dakota Steppes are: a) 4.0, 6.0 b) 4.4, 4.6 c) 5.5, 5.8, d) 10.0, 6.0 e) none of these 23) the variances of Idaho Slopes and Dakato Steppes are: a) .0145, .00038  b) .011584, .000304 c) .006454,.000154 d) .0008068, .000193 e) none of the above    24) the variance of stock a is .004 and the variance of the market is .007 and the covariance between the two is .0026. what is the correlation coefficient? a) .9285 b) .8524 c). 5010 d) .4913 e) .3510

Question

I am currently working on some practice problems to study for a test and need help setting up and understanding how to calculate them

Use the following to answer questions 22-23

Idaho Slopes and Dakota Steppes are both seasonal businesses. IS is a downhill skiing factory, while DS is a tour company that specialized in walking tours and camping. the likely returns on each company over the next year is expected to be:

economy idaho slopes

dakota steppes

strong downturn -10% 2%
mild downturn -4% 7%
slow growth 4% 6%
moderate growth 12% 4%
strong growth 20% 4%

22) the mean expected returns of Idaho Slopes and Dakota Steppes are:

a) 4.0, 6.0 b) 4.4, 4.6 c) 5.5, 5.8, d) 10.0, 6.0 e) none of these

23) the variances of Idaho Slopes and Dakato Steppes are:

a) .0145, .00038 

b) .011584, .000304

c) .006454,.000154

d) .0008068, .000193

e) none of the above 

 

24) the variance of stock a is .004 and the variance of the market is .007 and the covariance between the two is .0026. what is the correlation coefficient?

a) .9285 b) .8524 c). 5010 d) .4913 e) .3510

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