Fiin550 fin560 chap7 3. the following are the monthly rates of return


  

Fiin550 fin560

Chap7

3. The aftercited are the monthly rebukes of come-back for Madison Cookies and for Sophie Electric during a six-month limit.

Compute the aftercited.

a. Average monthly rebuke of come-back for each hoard 

b. Rule intermission of come-backs for each hoard

c. Covariance betwixt the rebukes of come-back

d. The apposition coefficient betwixt the rebukes of come-back

What roll of apposition did you wait-for? How did your wait-forations parallel delay the computed apposition? Would these two hoards be amiable choices for diversification? Why or why not?

7. The aftercited are monthly percentage cost changes for lewd traffic indexes.

Compute the aftercited.

a. Average monthly rebuke of come-back for each index 

b. Rule intermission for each index

c. Covariance betwixt the rebukes of come-back for the aftercited indexes: DJIA–S&P 500 S&P 500–Russell 2000 S&P 500–Nikkei Russell 2000–Nikkei

d. The apposition coefficients for the corresponding lewd combinations 

e. Using the answers from ability (a), (b), and (d), number the wait-fored come-back and rule intermission of a portfolio consisting of similar ability of (1) the S&P and the Russell 2000 and (2) the S&P and the Nikkei. Discuss the two portfolios.

8. The rule intermission of Shamrock Corp. hoard is 19 percent. The rule intermission of Cara Co. hoard is 14 percent. The covariance betwixt these two hoards is 100. What is the apposition betwixt Shamrock and Cara hoard?