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.

Year 2010 2011 2012 2013 2014 2015 Stock A -10% 20% 5% -5% 2% 9%

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

AppendixLO1