Consider the information below relating to the monthly rates ofreturn for two companies’ X and Y over a period of 5 months:
i) Compute the average return per month for each company [3marks]
ii) Determine the variance and standard deviation of the returnfor each company [3 marks]
iii) What is the coefficient of variation for each company [3marks]
iv) An investor would like to invest in Shares for one of thesetwo companies. Give a professional advise based on your analysis [3marks]
v) Compute the covariance and coefficient of correlation betweenthe returns of the two companies [3 marks]
Consider the information below relating to the monthly rates of return for two companies’ X and Y over a period of 5 mon
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