The covariance between the two stock returns is .
Question
The covariance between the two stock returns is .
Solution
To answer this question, we first need to know the specific stock returns you're referring to. However, I can explain how to calculate the covariance between two stock returns.
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Gather the data: You need the historical return data for both stocks. This data can usually be found on financial websites.
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Calculate the mean return for each stock: Add up all the returns for each stock and then divide by the number of returns.
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Subtract the mean from each individual return: This gives you the deviation from the mean for each return.
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Multiply the deviations: For each time
Similar Questions
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What is the return correlation between Stock X and Y?
The covariance of returns is -0.0120. The standard deviation of a portfolio is 5%, whose 60% is invested in Security I and 40% in Security II. The variance of security A is 80% of security B. The variances of the securities should respectively be Question 31Answera.12.14% for A & 13.57 for Bb.1.47% for A & 1.84% for Bc.12.14% for A and 15.17% for B
What is the relationship between the covariance and the correlation coefficient
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