Answer:
x=1 y=0, x=2 y=4, x=3 y=8
Explanation:
substitute all the numbers in the x area and multiply then subtract 4
Answer and Explanation:
if the long term interest rate in the US suddenly declines and all other factor are unchanged then,Fed's estimated NPV of the divestiture will be larger than that of last week because the decline in the long term interest rate in the US and all other factors unchanged the euro's value in the future years will decrease.
Answer:
The volatility of this equally weighted portfolio is closest to 0.31
Explanation:
Individual Stock + ( 1 - 1/n) * Average Covariance between the stocks
Var = ( 1 / 5) (0.40)2 + ( 1 - 1/5) (0.5( (0.4) (0.4)
Var = 0.096
standard deviation = Square root of variance
= Square root of 0.096
= 0.31
Answer: A)0.028025
Explanation:
Covariance measures thw relationship between 2 random variables by measuring the variations of two variables from their expected value.
When calculating covariance we use the following formula,
Cov (R1, R2) = p12*σ1*σ2
Where
p12 is the correlation coefficient
σ1 is the standard deviation of Variable 1
σ2 is the standard deviation of Variable 2.
Calculating then we have,
Cov (hs,mt) = 0.078042 * 0.57* 0.63
Cov (hs,mt) = 0.0280248822
Cov (hs,mt) = 0.028025
The covariance of the returns is 0.028025.