Covariance

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Is there a way to calculate covariance using the calculator?? It takes me sooo long to calculate it every time, especially for portfolios with 2 assets or more. Thanks!
 
Covar is correlation * Std dev1 * Std Dev2 for a two asset port, these should be given in the fact pattern.
 
On a similar note, I’m using the BA II Plus, and I would REALLY appreciate it if someone could explain to me how Standard Deviation can be calculated on this calculator.
Cheers!
 
cfa222 Wrote:
——————————————————-
> Covar is correlation * Std dev1 * Std Dev2 for a
> two asset port, these should be given in the fact
> pattern.
I know this formula but if you are not given the st deviations or correlation??
 
chad17 Wrote:
——————————————————-
> On a similar note, I’m using the BA II Plus, and I
> would REALLY appreciate it if someone could
> explain to me how Standard Deviation can be
> calculated on this calculator.
>
> Cheers!
chad17,
I have the BA II Plus Professional and on my calculator you just click on 2nd then DATA, input your variables and the click 2nd STAT and scroll over to the st dev, var and so on. there should be a way to do the same calculation on BA II Plus.
 
Again, nothing to do with covariance, but how would you find standard deviation on a BA II Plus when there are probabilities given for each expected return:
Return Probability
11% 20%
14% 50%
15% 30%
What is the standard deviation of the returns?
A) 1.42%.
B) 0.02%.
C) 1.74%.
D) 2.00%.
 
enter 11 2 times, 14 5 times, 15 3 times using your 2nd Data
for the X variable.
sigma x = 1.42%
 
To answer the original covariance question:
Plug in the data for the two stocks using 2ND and DATA and then hit 2ND and STAT and scroll down to get values for individual standard dev. of the two stocks and the value of “r” (which is the correlation) then just multiply the three numbers. voila!
 
have u guys been using the calculator to figure out these problems? i’ve been doing them by formula when drilling through the qbank…
 
Calculator saves time. Time=chance of a higher score on the exam. Get used to the calculator, it’ll help you A LOT on the exam.
 
when i scroll down i don’t get “r” i just get error 1 after “b”
 
Something wrong with your numbers maybe? Try entering them again, rest the calculator and then try (2ND and +|-). It should work, ive done it quite a lot of times on the BA II Plus
 
can you give me an example of how to get correlation “r” please
 
Think I may have it… You plug in your Expected value for X and your standard deviation for Y?
 
cpk123 Wrote:
——————————————————-
> enter 11 2 times, 14 5 times, 15 3 times using
> your 2nd Data
> for the X variable.
>
> sigma x = 1.42%
Not getting the same answer???
 
perdition Wrote:
——————————————————-
> cpk123 Wrote:
> ————————————————–
> —–
> > enter 11 2 times, 14 5 times, 15 3 times using
> > your 2nd Data
> > for the X variable.
> >
> > sigma x = 1.42%
>
> Not getting the same answer???
I’m getting sigma x of 1.96…
 
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