An Investor Is Considering Purchasing an Auto Stock (A) and a Gold

question 61

Essay

An investor is considering purchasing an auto stock (A) and a gold stock (B).If the auto stock is purchased, it is expected that it will provide an -8%, 5% and 18% potential returns during recessionary, normal or boom economies.If a gold stock is purchased, it is expected that it will provide 20%, 3% or -20% returns during the three economic states.All economic states have equal chance of occurring.Based on the above information, determine the correlation between the two stocks.

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Definitions:

Branching Mechanisms

The feature in programming and version control systems that allows for the divergence from the main line of development, to experiment or to work on different tasks simultaneously.

Break Statements

Instructions in programming that cause the immediate termination of a loop, switch, or labeled block.

Switch Statement

A switch statement is a control flow statement that allows a variable to be tested against a list of values, each with its own code block to execute.

Syntax Error

A mistake in the code that causes the program to fail to compile or run correctly.