You believe that there is a 20% chance that Astro company’s share will drop by 11%...

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.

Solutions

Expert Solution

Given information

Astro company

probability changes in share %

20%. -11%

80%. 17%

ock group company

probability. changes in share %

25%. -15%

75%. 24%

jeff jeffy answered 1 year ago

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