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Following are annual returns for Amazon and Tiffany: Amazon Tiffany 2017 15% -6% 2018 6% 4% 2019 -5% 6% Calculate covariance (2pts) Calculate correlation coefficient

Following are annual returns for Amazon and Tiffany: Amazon Tiffany

2017 15% -6%

2018 6% 4%

2019 -5% 6%

Calculate covariance (2pts) Calculate correlation coefficient (2pts) Should these companies be combines in a portfolio? (1pts) Why? (1pts)

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