L4 - Statistics Flashcards
1
Q
Expected Value calculation?
A
2
Q
Return Variance calculation?
A
s.d. = volatilty
var(x) = E(x2) - E(x)2
3
Q
Covariance calculation?
A
4
Q
Correlation calculation?
A
- -1 –> perfectly negatively correlated
- 1 –> perfectly positive correlation
5
Q
Estimation of the summary statistics?
A
- when t is larger we can use 1/T for variance
6
Q
How to calculate portfolio weights?
A
7
Q
How to calculate Portfolio Expected Return?
A
8
Q
How to calculate Portfolio Variance and Standard deviation?
A
