ENGIN 120 Final: e120-su2012-final-Adler-exam
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Sid: any communication with other students during the exam (including show- ing, viewing or sharing any writing) is strictly prohibited. Any violation will result in a score of 0 points for the exam: clearly state all the mathematical expressions that are needed to solve the problems. No credit will be given to numerical answers without the proper setup: answer each of the following questions in the space provided. And you should express your answer as the number of months from the 60th month: stocks a and b are both selling for right now. Suppose there are three possible cases of the market condition in one year from now, each with equal probability. Condition price of stock a price of stock b. 85 (a) find the annual return rate of each stock in each case (i. e. good / average / bad). Then nd the expected return and variance of each stock"s return and the covariance of the two stock returns.
