Exercise 4 Stocks N and W have the following rates of return ROR of stock N -7% 4% 10% 14% Probability 30% 20% 40% 10% ROR of stock W -10% 2% 5% 17% Probability 25% 15% 35% 25% 1- Calculate the expected rate of return for both N and W. 2- Calculate the standard deviation of the rate of return of N and W. 3- Calculate the correlation between the rates of return of both stocks. Exercise 5 The prices of 4 securities between 2010 and 2015 are listed in the following table Year Security 1 Security 2 Security 3 Security 4 2010 17 235 61 83 2011 17 174 67 60 2012 16 204 75 68 2013 24 184 67 70 2014 15 200 74 55