Fiin550 fin560 chap7 3. the following are the monthly rates of return


  

Fiin550 fin560

Chap7

3. The subjoined are the monthly reprimands of render for Madison Cookies and for Sophie Electric during a six-month time.

Compute the subjoined.

a. Average monthly reprimand of render for each fund 

b. Type rupture of renders for each fund

c. Covariance betwixt the reprimands of render

d. The interdependence coefficient betwixt the reprimands of render

What roll of interdependence did you forebode? How did your forebodeations assimilate delay the computed interdependence? Would these two funds be amiable choices for mutability? Why or why not?

7. The subjoined are monthly percentage charge changes for immodest traffic indexes.

Compute the subjoined.

a. Average monthly reprimand of render for each index 

b. Type rupture for each index

c. Covariance betwixt the reprimands of render for the subjoined indexes: DJIA–S&P 500 S&P 500–Russell 2000 S&P 500–Nikkei Russell 2000–Nikkei

d. The interdependence coefficients for the similar immodest combinations 

e. Using the answers from talents (a), (b), and (d), consider the forebodeed render and type rupture of a portfolio consisting of resembling talents of (1) the S&P and the Russell 2000 and (2) the S&P and the Nikkei. Discuss the two portfolios.

8. The type rupture of Shamrock Corp. fund is 19 percent. The type rupture of Cara Co. fund is 14 percent. The covariance betwixt these two funds is 100. What is the interdependence betwixt Shamrock and Cara fund?