Spreadsheets are useful for computing statistics: averages, standard deviation, variance, and correlation are included as built-in functions. Below is recent monthly stock return data for ExxonMobil (XOM) and Microsoft (MSFT). Using a spreadsheet and its functions, compute the average, variance, standard deviation, and correlation between the returns for these stocks. What does the correlation between the returns imply for a portfolio containing both stocks?

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Month November October September August I Return -4.6% 0.1% MSFT Return 10.490 1 3 .690 -10.3% -13.8% -9.3% 5.5% 2.1% 73 .990 5.50 -4.4% May 0.7% 9.4% 2 March February -34%