Question

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 22%,-36%, -48%; MC: 14%, -20%, -22%. Calculate the sample covariance between the returns of FC and MC.(For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". If you use the =COVAR function in Excel you must multiply the result by {3/2} to adjust for the degrees of freedom.  If you use the =COVARIANCE.S function in Excel, then you won't need to multiply the result by 3/2 as that function automatically adjusts for the degrees of freedom.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 42%,-4%,18%; MC: -30%, 40%, -21%. What is the standard deviation of the portfolio with 50% of the funds invested in FC and 50% in MC? (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =VAR and =STDEV functions in Excel.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 14%,-3%,3%; MC: -31%,-26%,-7%. What is the sample variance of the portfolio with 50% of the funds invested in FC and 50% in MC. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =VAR function in Excel.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -26%,-28%,-12%; MC: -17%,38%,-49%. Calculate the correlation coefficient between the return of FC and MC. Enter your answer out to the fourth decimal, e.g. )".0901". (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You can use the =CORREL function in Excel.)

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: 40%,-13%,-36% and MC:22%,39%,-28%. If FC and MC are combined in a portfolio with 50% of the funds invested in each, calculate the expected return on the portfolio. (For these problems don't enter the % into your formula, e.g. treat "10%" as "10", not as "0.10". You may want to employ the =AVERAGE function in Excel.)

Answer 1

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