J. P. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&amp;P was with a standard deviation of and the expected return over that same period for a Core Bonds fund was with a standard deviation of (J. P. Morgan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&amp;P and Core Bonds is . You are considering portfolio investments that are composed of an S&amp;P index fund and a Core Bonds fund. a. &nbsp;Using the information provided, determine the covariance between the S&amp;P and Core Bonds. Round your answer to two decimal places. If required enter negative values as negative numbers.&nbsp;&nbsp;

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J. P. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&amp;amp;P was with a standard deviation of and the expected return over that same period for a Core Bonds fund was with a standard deviation of (J. P. Morgan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&amp;amp;P and Core Bonds is . You are considering portfolio investments that are composed of an S&amp;amp;P index fund and a Core Bonds fund. a. &amp;nbsp;Using the information provided, determine the covariance between the S&amp;amp;P and Core Bonds. Round your answer to two decimal places. If required enter negative values as negative numbers.&amp;nbsp;&amp;nbsp;

user_27qwe · Accepted Answer

Let x be the return for S&amp;amp;P 500Let y be the return for the core bonds fundDetermine the correlation coefficient between two random variables x and yρxy=σxyσxσyTherefore, the covariance between S&amp;amp;P 500 and core bonds fund is calculatedσxy=ρxyσxσy=(-0.32)(19.45)(2.13)=-13.2571

J. P. Morgan Asset Management publishes information

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