Chapter 10, Problem 6

Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately.

Historical Stock and Dividend Data for Boeing
Date	Price	Dividend	Date	Price	Dividend
1/2/2008	86.62		1/3/2011	66.40
2/6/2008	79.91	0.40	2/9/2011	72.63	0.42
5/7/2008	84.55	0.40	5/11/2011	79.08	0.42
8/6/2008	65.40	0.40	8/10/2011	57.41	0.42
11/5/2008	49.55	0.40	11/8/2011	66.65	0.42
1/2/2009	45.25		1/3/2012	74.22

Chapter 11, Problem 5

Using the data in the following table, estimate

The average return and volatility for each stock

The covariance between the stocks

The correlation between these two stocks.

	2007	2008	2009	2010	2011	2012
Stock A	-10%	20%	5%	-5%	2%	9%
Stock B	21%	7%	30%	-3%	-8%	25%