QUANT

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

QUANT

Postby azharmohammad » Wed Jan 18, 2017 4:57 am

How can we caclulate it by using finncial calculator?
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edupristine
Finance Junkie
Posts: 791
Joined: Wed Apr 09, 2014 6:28 am

Re: QUANT

Postby edupristine » Wed Jan 18, 2017 9:15 am

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

Postby ritam.roychowdhury » Fri Feb 10, 2017 4:46 am

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

Answer = STO3 - STO1*STO2

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


Hope this is helpful.

Thanks
Ritam

edupristine
Finance Junkie
Posts: 791
Joined: Wed Apr 09, 2014 6:28 am

Re: QUANT

Postby edupristine » Fri Feb 10, 2017 8:35 am

thanks Ritam :)


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