Using the data in the following table,

, estimate the:

a. Average return and volatility for each stock.

b. Covariance between the stocks.

c. Correlation between these two stocks.

Question content area bottom

Part 1

a. Estimate the average return and volatility for each stock.

The average return of stock A is

enter your response here%.

(Round to two decimal places.)

Part 2

The average return of stock B is

enter your response here%.

(Round to two decimal places.)

Part 3

The standard deviation of stock A is

enter your response here.

(Round to five decimal places.)

Part 4

The standard deviation of stock B is

enter your response here.

(Round to five decimal places.)

Part 5

b. Estimate the covariance between the stocks.

The covariance is

enter your response here.

(Round to five decimal places.)

Part 6

c. Estimate the correlation between these two stocks.

The correlation is

enter your response here.

(Round to five decimal places.)

Data table (Click on the following icon in order to copy its contents into a spreadsheet.)