QUESTION 3 The following table contains the return on equity (ROE) and share price of ABC Corporation: Share price ($) Return on Equity (%) 1101 10 12 20 3.1 Calculate the mean of the return on equity and the mean of share price; 3.2 Calculate the variance of the return on equity and the variance of share price; 3.3 Calculate the standard deviation of the return on equity and the standard deviation of share price; 3.4 Calculate the covariance between the retum on equity and share price. Is the relationship between the return on equity and share price negan ive? Why or why not? 3.5 Calculate the coefficient of correlation between the return on equity and share price. Is the relationship between returm on equity and share price weak? Why or why not? 3.6 In order to boost share price, would you recommend a strategy that aims at improving retun on equity? Why or why not?
QUESTION 3 The following table contains the return on equity (ROE) and share price of ABC Corporation: Share price ($) Return on Equity (%) 1101 10 12 20 3.1 Calculate the mean of the return on equity and the mean of share price; 3.2 Calculate the variance of the return on equity and the variance of share price; 3.3 Calculate the standard deviation of the return on equity and the standard deviation of share price; 3.4 Calculate the covariance between the retum on equity and share price. Is the relationship between the return on equity and share price negan ive? Why or why not? 3.5 Calculate the coefficient of correlation between the return on equity and share price. Is the relationship between returm on equity and share price weak? Why or why not? 3.6 In order to boost share price, would you recommend a strategy that aims at improving retun on equity? Why or why not?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
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