Question: 1. a. Estimate the average return for each stock. b. Estimate the covariance between the stocks. The covariance is the expected product of the deviation

1.

a. Estimate the average return for each

stock.

b. Estimate the covariance between the stocks. The covariance is the expected

product of the deviation of each return from its mean.

c. Estimate the correlation between these two stocks.

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