Question: Using the data in the following table, estimate (a) the average return and volatility for each stock; (b) the covariance between the stocks and (c)

 Using the data in the following table, estimate (a) the average

Using the data in the following table, estimate (a) the average return and volatility for each stock; (b) the covariance between the stocks and (c) the correlation between these two stocks. 2014 Year Stock A Stock B 2009 -4% 12% 2010 15% 7% 2011 2% 43% 2012 -9% -7% 2013 2% -4% 7% 29% a. Estimate the average return for each stock. b. Estimate the covariance between the stocks. c. Estimate the correlation between these two stocks. a. Estimate the average return for each stock. The return of stock Ais %. (Round to two decimal places.)

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