## QUANT

Posts: 9
Joined: Fri Aug 05, 2016 5:52 am

### QUANT

How can we caclulate it by using finncial calculator?
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edupristine
Finance Junkie
Posts: 871
Joined: Wed Apr 09, 2014 6:28 am

### Re: QUANT

Hi Azhar

There is no any shortcut key for calculating this Question on Financial Calculator.
To Calculate this you need to follow the formulae and solve this on simple calculator.

ritam.roychowdhury
Posts: 1
Joined: Fri Feb 03, 2017 12:12 pm

### Re: QUANT

cov(RA, RB) = E(RA*RB) - E(RA)*E(RB)

1. Calculate RA*RB for all rows

2. E(RA):
In the calculator, press 2nd->Data -> Input the probability values in X1, X2 etc. and RA values in Y1, Y2 etc
The 2nd-> STAT .....Keep pressing the down key...Get the value of ∑XY
Store the value in say STO 1

3. E(RB):
In the calculator, press 2nd->Data -> Input RB values in Y1, Y2 etc. Probability Values will already remain in X1, X2 etc
The 2nd-> STAT ....Keep pressing the down key....Get the value of ∑XY
Store the value in say STO 2

4. E(RA*RB):
In the calculator, press 2nd->Data -> Input RA*RB values (calculated in Step 1) in Y1, Y2 etc. Probability Values will already remain in X1, X2 etc
The 2nd-> STAT ...Keep pressing the down key.....Get the value of ∑XY
Store the value in say STO 3

You can use the above method even if there are large number of data rows, say 10 or so.

Thanks
Ritam

edupristine
Finance Junkie
Posts: 871
Joined: Wed Apr 09, 2014 6:28 am

thanks Ritam