Assume that there are 52 weeks in a year. Use the weekly close prices of Microsoft (Ticker: MSFT) and Amazon (Ticker: AMZN) stocks ("MSFT AMZN Weekly Stock Price.xlsx" in "Final Exam" tab on BlackBoard) to calculate

1) average weekly returns of MSFT stock,

2) standard derivation of weekly returns of MSFT stock, and

3) correlation coefficient between MSFT and AMZN stock weekly returns.

Based on above calculation, answer the following question:

4) suppose you only have 100 shares of AMZN stock in your portfolio, will adding 50 shares of MSFT stock reduce portfolio risk?