Question

Chapter 06 Practice Test Question 05 Calculating Ex-Post Covariance An analyst obtains 24 annual return observations for Stock 1 and Stock 2. The analyst finds that the sum of the squared deviations from the mean for Stock 1 and Stock 2 are 1.8775 and 1.4197 respectively. The sum of the product of the deviations from the mean for Stock 1 and Stock 2 is 1.7528. The covariance between the stocks is points Skipped eBook 1 Print 0 0.0648 References 0 0.0846 0 0.0438 0 0.0762

Answer 1

85. cor (x, y) = {(x; - 2 ) ( ) - Let a be stock 1 & y be stock n- - 1:7528 23 = 0.0762