Norvell Mullen

Annual Annual

Date Close Price Dividend Return(%) Close Price Dividend Return(%)

12/31/2014	24.00			28.00
12/31/2015	30.25	0.92	29.88	32.65	0.86	19.68
12/31/2016	27.50	1.12	-5.39	30.35	0.98	-4.04
12/31/2017	32.50	1.32	22.98	40.20	1.10	36.08
12/31/2018	29.90	1.52	-3.32	43.70	1.22	11.74
12/31/2019	35.20	1.72	23.48	40.50	1.34	-4.26

Estimated s_Norvell = 16.56% Estimated s_Mullen = 17.03%

1. Compute the annual returns for 2015 through 2019 (e.g., each year's return) of an equally weighted portfolio of Norvell stock and Mullen stock.

2. Provide an intuitive explanation of what the correlation coefficient between the returns of the two securities measures. Comment on whether you would expect the typical correlation coefficient between two stocks to be positive, negative, or around zero, and why in either case.