In: Finance
You believe that there is a 20% chance that Astro company’s share will drop by 11% and 80% chance that it will increase by 17%. In addition, there is a 25% chance that OCK Group Berhad company’s share will drop by 15% and a 75% chance that it will increase by 24%. The covariance is 0.009.
Calculate the expected return, the variance, the standard deviation, and the correlation for each share.
Given information
Astro company
probability changes in share %
20%. -11%
80%. 17%
ock group company
probability. changes in share %
25%. -15%
75%. 24%