Exercise 3 (5 points): You are provided with the following series of historical returns of two stocks, 1 and 2, over the past five years:

a) Which of these two securities presented the greatest risk? b) Calculate the correlation coefficient between the two titles 1 and 2 above.

1 2 3 4 5 Annes Rendements Titre 1 (%) Rendements Titre 2 (%) 3 4 5 6 7 7 7 8 6 9 11