7. (Statistics of two stocks, regression) Consider the returns for Ford and MSFT stocks given below: A B FORD AND MSFT 1 RETURN STATISTICS, 2005-2014 FORD MSFT 2 Date return return 3456 31-Dec-05 112.92% -0.93% 31-Dec-06 -52.92% 15.82% 31-Dec-07 -43.44% 20.85% 31-Dec-08 -5.91% -44.37% 7 31-Dec-09 -5.83% 60.40% 8 31-Dec-10 53.33% -6.52% 9 31-Dec-11 -48.14% -4.52% 10 31-Dec-12 -11.38% 5.83% 11 31-Dec-13 4.73% 44.29% 12 31-Dec-14 -32.90% 27.54% a. Calculate the mean return and the standard deviation of each stock. Also calculate the correlation coefficient between the two stocks. b. Show a regression that describes the relationship between the returns of the two stocks. c. How would you construct a portfolio from those two stocks that yields 8% mean return?