From values of the Standard and Poors 500 index and of General Electric stock at closing on the listed dates, the annual return rates were as follows: period TSP TGE 06/15/13- 06/15/14 0.1902 0.1497 06/15/14-06/15/15 0.0766 0.0063 06/15/15-06/15/16-0.0062 0.1242 Here is the same data as text rsp: 0.1902,0.0766.-0.0062 TGE: 0.1497,0.0063,0.1242 The average return rates for the SP500 and GE data are (1) TSP0869 (2)TCE-1 .0934 Then 1rsP SP TCE0038 We wish to use the sample data to estimate the variances 2p, GE, Using the "unbiased" formulas that divide (3), (4) and (5) by N-1-2, we find (6) o3p0097 and the covariance GESp GE,SP (8) GESP ~: | .00 19 The coefficient of correlation is ther OCE,SP33.79