Hi all,
I have a finance problem that I am struggling with and would appreciate any assistance!
I was asked to compute the correlation coefficient for two separate stocks. I calculated the covariance of the two stocks and then calculated the correlation coefficient, getting a perfect positive correlation of 1.0 (actually 1.08). I was then asked if I could build a portfolio of the two assets (X and Y) with zero risk.
I know that there is some weighting involved in order to solve this problem, but my textbook and class notes are basically using Excel in their examples and I need to do the math by hand.
Any help is greatly appreciated!
I have a finance problem that I am struggling with and would appreciate any assistance!
I was asked to compute the correlation coefficient for two separate stocks. I calculated the covariance of the two stocks and then calculated the correlation coefficient, getting a perfect positive correlation of 1.0 (actually 1.08). I was then asked if I could build a portfolio of the two assets (X and Y) with zero risk.
I know that there is some weighting involved in order to solve this problem, but my textbook and class notes are basically using Excel in their examples and I need to do the math by hand.
Any help is greatly appreciated!