Use the table below to answer the following question(s).
Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds. Answer the following questions using PHStat.
-What is the covariance between the two assets?
A)4.64
B)4.69
C)4.77
D)4.81

Question

Use the table below to answer the following question(s).
Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds.  Answer the following questions using PHStat.
-What is the covariance between the two assets?
A)4.64 
B)4.69 
C)4.77 
D)4.81

Quizplus · Accepted Answer

The covariance between the two assets is 4.64. This can be calculated by multiplying the covariance of the first asset with the second asset by the correlation between the two assets.

Use the Table Below to Answer the Following Question(s)