Yr 1 2 the variance, standard deviations, and coefficient of variation for X and Y. Which stock is the least risky? 4 Rx 12.20 9.65 0.00 Ry 3 6.50 12.50 8.00 -2.00 9.57
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- EXAMPLE• Consider the following information:State Probability ABC, Inc. ReturnBoom .25 0.15Normal .50 0.08Slowdown .15 0.04Recession .10 -0.03• What is the expected return?• What is the variance?• What is the standard deviation?What would be the expected value, variance and standard deviation of an event that always took the value one as its outcome? O 1, 0,0 О 1, 1,0 O 1, 0, 1 О 1, 1, 1Consider the following two sets of data: A = [0.5, -0.6, 0.1, 10] & B = [6, 4, 4.5, 5.5]. Which data set will have the greatest variance?
- 30. Based on the Regression result for KLIC, if Variance of the Residuals is equal 0.0126 and Variance of SPY equals to 0.0037, what must be the amount total risk for KLIC? A. 0.0163 B. 0.0417 C. 0.0362 D. 0.0192 E. 0.0704Suppose we have the following values for variables X and Y: XY 06 1 3 20 What is the value for the sample correlation coefficient (or r)? -0.9520 1The returns on assets C and D are strongly correlated with a correlation coefficient of 0.80. The variance of returns on C is 0.0009, and the variance of returns on D is 0.0036. What is the covariance of returns on C and D? Give typing answer with explanation and conclusion
- (i) Calculate the mean of the probability distribution. (ii) Calculate the variance and standard deviation of this probabilitydistribution.The variance of expected returns is equal to the square root of the expected returns. a. True b. FalseCh. 11. If two returns are positively related to each other, they will have a ________, and if they are negatively related to each other, the ______________. Group of answer choices positive covariance, covariance will be negative negative covariance, covariance will be zero positive covariance, standard deviation will be negative negative covariance, covariance will be positive
- Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and r12=0.55 respectively.A portifolio with weights W1=0.25 and W2= 0.65 is formed calculate the expected return and variance of the portifolioSuppose that you are given a decision situation with three possible states of nature: s1, s2, and s3. The prior probabilities are P(s1) = 0.2, P(s2) = 0.5, and P(s3) = 0.3. With sample information I, P(I|s1) = 0.1, P(I|s2) = 0.05, and P(I|s3) = 0.2. Compute the revised (or posterior) probabilities: P(s1|I), P(s2|I), and P(s3|I).Consider the following time series: a. Construct a time series plot. What type of pattern exists in the data? b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. c. What is the forecast for t = 6?