You have the following information: Walmart Returns Market Returns t1 0 -0.01 t2 -0.08 -0.05 What is the Covariance of Walmart and the Market? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed. t3 0.09 -0.02 t4 -0.03 0.03

You have the following information: Walmart Returns Market Returns t1 0 -0.01 t2 -0.08 -0.05 What is the Covariance of Walmart and the Market? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed. t3 0.09 -0.02 t4 -0.03 0.03

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 10P: The file Fortune500 contains data for profits and market capitalizations from a recent sample of...

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Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

You have the following information:
Walmart Returns
Market Returns
t1
0
-0.01
t2
-0.08
-0.05
What is the Covariance of Walmart and the Market?
Type your answer as decimal (i.e. 0.052 and not 5.2%).
Round your answer to the nearest four decimals if needed.
t3
0.09
-0.02
t4
-0.03
0.03

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