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Problem 1 ( 2 0 points ) . The following are the monthly rates of return for Madison Cookies and for Sapphire Electric during a
Problem points The following are the monthly rates of return for Madison Cookies and for Sapphire Electric during a sixmonth period:
tableMonthtableMadison CookiesMS in shorttableSophie ElectricSE in Short
Please keep numbers after the decimal point in your answers.
a points Compute monthly average return for each stock. madison Sop Lie
b points Compute standard deviations of returns for each stock
c points Compute the covariance between the returns of the two stock
d points Compute the correlation coefficient of the two stocks' returns.
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