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(a) Mydin as an investor want to look at the correlation between these two shares in different sector. The following are the monthly rates of

(a) Mydin as an investor want to look at the correlation between these two shares in different sector. The following are the monthly rates of return for Metronic Bhd and Degem Berhad during six-month.

Month Mechatronic Bhd Degem Bhd
July -0.04 0.07
August 0.06 -0.02
September -0.07 -0.10
October 0.12 0.15
November -0.02 -0.06
December 0.05 0.02

i. Compute average monthly rate of return, standard deviations, covariance, correlation coefficient for each share. (18 mark)

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