Question: 6. Using the data in the following table, estimate: (a) The average return and volatility for each stock (b) The covariance between the stocks (c)

6. Using the data in the following table, estimate: (a) The average return and volatility for each stock (b) The covariance between the stocks (c) The correlation between these two stocks (d) Calculate the volatility of a portfolio that is 70% invested in stock A and 30% invested in stock B.

	A	B
2004	-10%	21%
2005	20%	7%
2006	5%	30%
2007	-5%	-3%
2008	2%	-8%
2009	9%	25%

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