As a new Investment Analyst for Burt & Brommer (B&B) Capital Management, Inc., you are asked to estimate the mean, variance, standard deviation of returns for FedEx (FDX) common stock. You have obtained the following actual annual rates of return for the previous fourteen-years for both FedEx stock and the (NYSE):

Year FDX (%) Market (%) (FDX-Mean)(Market-Mean)

2020 71.67 -2.01 -491.77

2019 -27.74 5.46 31.24

2018 0.56 7.7 -16.79

2017 26.68 28.91 330.64

2016 7.06 3.75 12.55

2015 -3.88 -2.12 133.60

2014 25.33 8.11 24.70

2013 15.04 9.87 10.69

2012 11.93 4.29 0.32

2011 -2.68 6.78 -7.91

2010 123.17 57.05 5643.39

2009 -50.49 -45.24 3222.00

2008 -25.07 -3.86 375.50

2007 -2.29 8.73 -35.75

Mean ______ 6.244286 SUM 9232.39

Variance ______ 463.2035 COV _______

Std.Dev. ______ 21.52216 BETA _______

a) Using Excel, calculate the mean, variance and Standard Deviation for FedEx stock. The Market Index values are given above.

FDX

Mean _______%

Variance _________

Std. Dev _______%

b) Using Excel, calculated the covariance for FedEx stock with the NYSE Index: Covariance = _________

After using Excel to calculate the covariance of FedEx Corporation stock returns with the Market Index, what is FDXs correlation with the market and its beta () using the covariance?

Correlation = ________________ = 0._______

Beta () = _________________ = ________

c) Using Regression under Data in Excel, the y axis is FDX percentage returns and the x axis is the Market percentage returns. Copy and paste (as a picture) the regression output below. From the Regression output, what is the Beta for FDX Corporation stock?

Beta () = __________