Question: The table below presents the returns on stocks ABC and XYZ for a five-year period. Year ABC XYZ 1 0.16 0.12 2 0.42 0.62 3

The table below presents the returns on stocks ABC and XYZ for a five-year period.

Year	ABC	XYZ
1	0.16	0.12
2	0.42	0.62
3	-0.02	-0.23
4	-0.26	-0.62
5	0.48	0.52

a) Calculate the average return and standard deviation of stock ABC and XYZ. Also, calculate the correlation between the two stocks. What does the correlation tell you about the return movements of the two stocks?

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