7. Consider the following returns (15points): Year End 2004 Stock X Realized Stock Y Realized Return 20.1% 72.7% -25.7% 56.9% 6.7% 17.9% Return -14.6% 4.3% -58.1% Stock Z Realized Return 71.1% 17.3% 0.9% 0.2% -3.2% -27.0% 2005 2006 2007 2008 2009 (1) (5 points) What are standard deviations of stock X and stock Y respectively? (2) (5 points) What are is the correlation between stock X's return and stock Y's return? (3) (5 points) Please estimate the return and standard deviation of the combination of stock X and stock Z in the equal shares 27.9% -5.1% -11.3%