Question: The following data are supplied for the common stocks of Nikola Corporation, Tesla, Inc. and General Motors: Nikola Corp (NKLA) Tesla Inc. (TSLA) Close

The following data are supplied for the common stocks of Nikola Corporation, Tesla, Inc. and General Motors: Nikola Corp (NKLA) Tesla Inc. (TSLA) Close Price ($) Close Price ($) 67.53 30.00 40.81 20.48 Date 6/30/20 7/31/20 8/31/20 9/30/20 215.96 286.15 498.32 429.01 General Motors (GM) Close Price ($) 25.30 24.89 29.63 29.59 (a) Compute the covariance of monthly returns of General Motors with returns of Tesla over the given period. (b) Using the covariance you have just computed in (a), calculate the correlation of monthly returns of General Motors with Tesla. Show all your formulas and inputs.

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