eBook

Problem 7-05

The following are the historic returns for the Chelle Computer Company:

Year	Chelle Computer		General Index
1	30		17
2	5		15
3	-8		14
4	9		-8
5	13		15
6	7		9

Based on this information, compute the following:

1. The correlation coefficient between Chelle Computer and the General Index. Do not round intermediate calculations. Round your answer to two decimal places.

2. The standard deviation for the company and the index. Do not round intermediate calculations. Round your answers to four decimal places.

   Chelle Computer: %

   General Index: %

3. The beta for the Chelle Computer Company. Do not round intermediate calculations. Round your answer to four decimal places.