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ntro The following table shows realized rates of return for two stocks. A B C 1 Year Stock A Stock B 2 1 -10% 15%

ntro

The following table shows realized rates of return for two stocks.

A B C
1 Year Stock A Stock B
2 1 -10% 15%
3 2 -26% -14%
4 3 -6% -8%
5 4 5% 28%
6 5 14% 8%
7 6 10% 6%

Attempt 1/10 for 10 pts.

Part 1

What is the arithmetic average return for stock B?

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Part 2

What is the variance for stock B?

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Part 3

What is the covariance of returns?

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Attempt 1/10 for 10 pts.

Part 4

What is the correlation coefficient?

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