For the next two questions, continue with the ASSUMPTION that the one-year HPRs for Tesla are:

{-20%; +60%; +10%; -6%; +520%}.

Now assume that you also acquired shares in APPLE, which has had annual HPRs of

{-5%; +60%; +5%; +50%; -80%}.

Assume also that the arithmetic mean return for Tesla is 100% and the arithmetic mean for Apple is 20%.

What is the correlation between Tesla and APPLE shares?

Answer format: e.g. X.XX = X.XX, 0.12 = 0.12 (2 decimal places)

Answer

Assume that you own a portfolio comprised of 40% Tesla and 60% APPLE. What return do you expect to earn on the portfolio next year?

Answer format: e.g. XX.X% = XX.X, 12.3% = 12.3 (no % sign, only 1 decimal place)