Question: using the data in the following table, estimate the average return and volatility for each stock, covariance between the stock as well as the correlation

using the data in the following table, estimate the average return and volatility for each stock, covariance between the stock as well as the correlation btween these two stocks.

Year 2007 2008 2009 2010 2011 2012

stock A -10% 20% 5% -5% 2% 9%

stock B 21% 7% 30% -3% -8% 25%

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