Question

For AP2- find the mean, variance, and standard deviation for Alpha and for Beta. Then, find the covariance and the correlation between Alpha and Beta. Distribution of returns of two stocks Probability Alpha Return Beta Return 0.05 40.3 -18.8 0.15 37.9 -9.5 0.30 30.1 1.3 0.22 24.6 6.9 0.13 19.7 13.0 0.09 7.5 22.6 0.06 -2.3 35.8

Name: for ap2 find the mean variance and standard deviation for alpha and for beta then find the covariance and the correlation between alpha and beta distribution of returns of two stocks probabi 31537
Uploaded: 2023-06-13T11:00:54-08:00
Duration: 4 min 22 s
Channel: Madhur L
Description: for ap2 find the mean variance and standard deviation for alpha and for beta then find the covariance and the correlation between alpha and beta distribution of returns of two stocks probabi 31537

          For AP2-  find the mean, variance, and standard deviation
for Alpha and for Beta.  Then, find the covariance and the
correlation between Alpha and Beta.
Distribution of returns of two stocks
Probability 
Alpha Return
Beta Return
0.05
40.3
-18.8
0.15
37.9
-9.5
0.30
30.1
1.3
0.22
24.6
6.9
0.13
19.7
13.0
0.09
7.5
22.6
0.06
-2.3
35.8

Added by Bonnie B.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Madhur L

06/13/2023

Step 1

Mean (Alpha) = Σ [P(x) * x] for all x in Alpha Mean (Alpha) = (0.05 * 40.3) + (0.15 * 37.9) + (0.30 * 30.1) + (0.22 * 24.6) + (0.13 * 19.7) + (0.09 * 7.5) + (0.06 * -2.3) Mean (Alpha) = 2.015 + 5.685 + 9.03 + 5.412 + 2.561 + 0.675 - 0.138 Mean (Alpha) ≈ Show more…

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For AP2- find the mean, variance, and standard deviation for Alpha and for Beta. Then, find the covariance and the correlation between Alpha and Beta. Distribution of returns of two stocks Probability Alpha Return Beta Return 0.05 40.3 -18.8 0.15 37.9 -9.5 0.30 30.1 1.3 0.22 24.6 6.9 0.13 19.7 13.0 0.09 7.5 22.6 0.06 -2.3 35.8