April 7th, 2022 
FINC 6366 – Project 2
| FINC 6366 – Project 2 – Covariance and Correlation | |||||||
| Name | Alexis | Giusti | |||||
| State of Economy | Probability | Return for Stock A | Return for Stock B | Return for Stock C | Return for Stock D | Return for Stock E | Return for Stock F |
| Growth | 0.25 | 31% | 3% | 15% | 21% | 0% | 18% |
| Status Quo | 0.50 | 21% | 1% | 3% | 7% | 4% | 3% |
| Recession | 0.25 | 20% | 4% | -5% | -6% | 6% | -4% |
| A) Expected Returns | |||||||
| E[RA] | E[RB] | E[RC] | E[RD] | E[RE] | E[RF] | ||
| B) Standard Deviations | |||||||
| σA | σB | σC | σD | σE | σF | ||
| C) Portfolio AB | |||||||
| WA | WB | CovAB | CorrAB | E[RAB] | σAB | ||
| D) Portfolio CD | |||||||
| WC | WD | CovCD | CorrCD | E[RCD] | σCD | ||
| E) Portfolio EF | |||||||
| WE | WF | CovEF | CorrEF | E[REF] | σEF | ||
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