Question #1 of 55Question ID: 1268116You observe the following pairs of annual returns on a sample of two stocks: [(0.03, 0.01),(0.06, 0.06), (0.02, 0.05), (0.13, 0.08)]. The covariance of the returns on the two stocks isclosest to:A)0.0033.B)0.0011.C)0.0008.D)0.00165.
Question #2 of 55Question ID: 1268084The central limit theorem states that, for any distribution, asngets larger, the samplingdistribution:
Get answer to your question and much more
Question #3 of 55Question ID: 1268096A bond analyst is looking at historical returns for two bonds, Bond 1 and Bond 2. Bond 2'sreturns are much more volatile than Bond 1. The variance of returns for Bond 1 is 0.012 andthe variance of returns of Bond 2 is 0.308. The correlation between the returns of the twobonds is 0.79, and the covariance is 0.048. If the variance of Bond 1 increased to 0.026 whilethe variance of Bond B decreased to 0.188 and the covariance remains the same, thecorrelation between the two bonds will:
Get answer to your question and much more
