Find covariance between returns on a b standard deviation


Please use the following information to answer parts a-d below

Ra= 0.03+0.5Rm+ea

Rb=0.02+1.3Rm+eb

σm=0.2, σea= 16.04%, σeb= 8.67%

a) Find Covariance between returns on A, B

b) Standard Deviation between returns on A, B

c) R Sqaure for both (R^2A, R^B)

d) Correlation between market return on Portfolio that is 60% in A and 40% in B

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Find covariance between returns on a b standard deviation
Reference No:- TGS02359678

Expected delivery within 24 Hours