You are given the following information concerning a stock and the market: Calculate the average return and

Question:

You are given the following information concerning a stock and the market: Returns Year Market Stock 2011 18% 31% 2012 11 27 2013 12 2014 -14 -21 2015 37 16 2016 15 22

Returns Year Market Stock 2011 18% 31% 2012 11 27 2013 12 2014 -14 -21 2015 37 16 2016 15 22

Calculate the average return and standard deviation for the market and the stock. Next, calculate the correlation between the stock and the market, as well as the stock€™s beta. Use a spreadsheet to calculate your answers.