Consider the stock return information provide below for two mutual funds. Use this information to answer the questions below:

 

  Period 

 Fund A     Fund B 

  2003  

 12.0%        8.0%  

  2004

 9.0%         16.0%

  2005  

15.0%      25.0%

 2006

 5.0%        3.0% 

  2007 

-3.0%        10.0% 

   

a) Calculate the mean return for each of the funds across the five years.  

b) Calculate the standard deviation of returns for each of the funds across the five years. 

c)  Calculate the covariance between the returns of the two stocks. 

d) Calculate the correlation between the returns of the two stocks.