A few days ago
tk059154

can some one clarify this sentence?

“Use Excel to calculate 3 correlations (CORREL) and 3 covariances (COVAR) between each stock’s excess returns and between the excess returns from the stocks and S&P500 index. ”

I dont understand what he wants me to do. I kno how to calculate cov and cor tho.

Top 1 Answers
A few days ago
Ludwig H

Favorite Answer

I am guessing you have 3 stocks to work with, is that right? If so, we’ll call them A, B, and C. So calculate correlations and covariances between A & B, A & C, and B &C. Also calculate the two quantities between A & S&P500, B & S&P500 and C & S&P500. I hope that is right but your professor worded that very badly and knowing nothing else about him/her, I would consider him/her to be an idiot.
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