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.

a

The average return of stock A is [_] %. (Round to two decimal places.)

The average return of stock B is [_] % (Round to two decimal places.)

The standard deviation of stock A is [_] % (Round to five decimal places.)

The standard deviation of stock B is [_] % (Round to five decimal places.)

b.

The covariance is [_] % (Round to five decimal places.)

c.

Estimate the correlation between these two stocks.

The correlation is [_] %. (Round to five decimal places.)

(Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A Stock B 2010 -9% 27% 2011 8% 6% 2012 5% 39% 2013 -7% - 2% 2014 3% - 13% 2015 8% 29%