Adequate information:
Probability in Bear
Probability in Normal
Probability in Bull
Expected return for Stock A in Bear
Expected return for Stock A in Normal
Expected return for Stock A in Bull
Expected return for Stock B in Bear
Expected return for Stock B in Normal
Expected return for Stock B in Bull
To compute: Expected return, standard deviation, covariance, and correlation
Introduction: The expected return of the stocks refers to the return expected on the stocks. Standard deviation measures the deviation between the actual prices and the average price. Covariance reflects the relationship of two random variables and projects the impact of one variable whenever the other one changes. Correlation refers to the degree of fluctuation of two variables in relation to one another.
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Corporate Finance
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