Question: Consider the data in the following table: Year 2004 2005 2006 2007 2008 2009 Stock A -10% 20% 5% -5% 2% 9% Stock B 21%

Consider the data in the following table:

Year

2004

2005

2006

2007

2008

2009

Stock A

-10%

20%

5%

-5%

2%

9%

Stock B

21%

7%

30%

-3%

-8%

25%

Use the above information to answer the following questions. Round your answers to four decimal places (i.e. 0.0105).

1. Estimate the average return for stock A.

2. Estimate the average return for stock B.

3. Estimate the volatility of stock A.

4.Estimate the volatility of stock B.

5 .Estimate the correlation between the two stocks.

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