Question: Using the data in the following table, calculate: A. Average return and standard deviation for each stock B. Covariance between the stocks C. Correlation between

Using the data in the following table, calculate:

A. Average return and standard deviation for each stock

B. Covariance between the stocks

C. Correlation between the stocks

D. Compute average return and standard deviation of the portfolio that maintains a 50% weight in Stock A and 50% in stock B

Year 2010 2011 2012 2013 2014 2015
Stock A -10.0% 20.0% 5.0% -5.0% 2.0% 9.0%
Stock B 21.0% 7.0% 30.0% -3.0% -8.0% 25.0%

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