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 covariance between the returns of Norvell stock and Mullen stock.

2. Now compute the correlation between the Norvell and Mullen stocks and indicate how this relates to the covariance in question 2.