Consider the following information on the expected return for companies X and Y. Economy Boom Neutral Probability 0.24 0.43 Poor 0.33 X 37% 17% -27% Y 11% 25% 9% a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Expected value Standard deviation 7.28% Company Y 16.36% % % b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.) Correlation coefficient

Consider the following information on the expected return for companies X and Y. Economy Boom Neutral Probability 0.24 0.43 Poor 0.33 X 37% 17% -27% Y 11% 25% 9% a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Expected value Standard deviation 7.28% Company Y 16.36% % % b. Calculate the correlation coefficient if the covariance between X and Y is 61. (Round your answer to 4 decimal places.) Correlation coefficient

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter9: Stocks And Their Valuation

Section: Chapter Questions

Problem 3TCL

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